With a long leasehold premises in Sturminster Newton, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than 80 years remaining. Anyone in Sturminster Newton with a lease nearing 81 years left should seriously think of extending it sooner than later. When the lease term has under eighty years remaining, under the current legislation the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Lease extensions in Sturminster Newton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Sturminster Newton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Michael owned a conversion flat in Sturminster Newton on the market with a lease of a few days over 61 years outstanding. Michael on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Michael to exercise his statutory right. Michael procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2011 we were called by Dr Tyler Brown who, having bought a basement apartment in Sturminster Newton in August 1996. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar homes in Sturminster Newton with 100 year plus lease were worth £280,000. The average ground rent payable was £45 billed quarterly. The lease termination date was in 2096. Having 70 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
In 2009 we were phoned by Dr Sophie Peterson who, having moved into a garden flat in Sturminster Newton in February 1995. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable homes in Sturminster Newton with an extended lease were valued about £223,400. The average ground rent payable was £60 invoiced monthly. The lease elapsed in 2085. Having 59 years remaining we estimated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of costs.