The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Taunton have the legal entitlement to extend the lease for an additional ninety years under legislation. Please give careful consideration before delaying your Taunton lease extension. Putting off that expense today simply increases the premium you will eventually have to pay to extend the lease.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Taunton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Taunton valuers.
Henry owned a conversion apartment in Taunton being marketed with a lease of just over 59 years left. Henry informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Henry to exercise his statutory right. Henry procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2010 we were phoned by Mrs Kate Simon who, having moved into a one bedroom flat in Taunton in September 1996. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative properties in Taunton with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease concluded in 2098. Considering the 72 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
Last Christmas we were phoned by Mr and Mrs. V David , who completed a first floor flat in Taunton in January 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar premises in Taunton with an extended lease were in the region of £233,200. The average amount of ground rent was £60 collected per annum. The lease finished on 13 September 2087. Having 61 years left we estimated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of expenses.