With a long leasehold premises in Stoke Gifford, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Leasehold owners in Stoke Gifford with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has fewer than eighty years outstanding, under the current legislation the freeholder can calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Santander | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Stoke Gifford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Sam was the the leasehold proprietor of a high value flat in Stoke Gifford being sold with a lease of just over sixty years unexpired. Sam informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2010 we were e-mailed by Dr Milo Allen who, having moved into a purpose-built flat in Stoke Gifford in April 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Stoke Gifford with a long lease were in the region of £183,600. The average ground rent payable was £65 invoiced yearly. The lease finished in 2083. Given that there were 57 years unexpired we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.
Last Autumn we were e-mailed by Mrs Phoebe Turner , who bought a basement flat in Stoke Gifford in March 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Stoke Gifford with a long lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease terminated in 2094. Having 68 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 not including fees.