When it comes to domestic leasehold property in Talbot Green, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than eighty years left. Residents in Talbot Green with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has below eighty years left, under the relevant statute the landlord is entitled to calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Talbot Green with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you better control over the value of your Talbot Green leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Aiden, started to get near to the eighty-year mark with the lease on his first floor flat in Talbot Green. In buying his home 19 years previously, the unexpired term was of minimal relevance. Fortunately, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Aiden arranged for a lease extension just in the nick of time in March. Aiden and the landlord in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £950.
Mr and Mrs. F Jones took over the lease of a first floor apartment in Talbot Green in February 2009. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Talbot Green with an extended lease were worth £265,000. The average ground rent payable was £50 billed per annum. The lease lapsed in 2099. Having 74 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
In 2011 we were contacted by Dr Reuben Simon who, having took over the lease of a one bedroom apartment in Talbot Green in October 1999. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar homes in Talbot Green with a long lease were valued around £166,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease concluded on 27 August 2079. Taking into account 54 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus professional charges.