When it comes to domestic leasehold premises in Taunton, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Anyone in Taunton with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has under 80 years remaining, under the relevant legislation the freeholder can calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Taunton with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| TSB | |
| The Mortgage Works |
Engaging our service will provide you enhanced control over the value of your Taunton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Daniel, started to get near to the 80-year threshold with the lease on his first floor flat in Taunton. Having bought his flat two decades ago, the unexpired term was of no importance. Luckily, he noticed he needed to take steps soon on a lease extension. Daniel was able to extend his lease at the eleventh hour last June. Daniel and the landlord in the end agreed on sum of £5,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,075.
Mr V Jackson acquired a one bedroom apartment in Taunton in January 1999. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical residencies in Taunton with a long lease were worth £184,000. The mid-range amount of ground rent was £55 billed yearly. The lease expiry date was on 21 September 2079. Given that there were 53 years remaining we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including legals.
In 2009 we were phoned by Mrs Isabelle Sharif who, having completed a one bedroom flat in Taunton in January 2001. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable premises in Taunton with an extended lease were valued around £290,000. The average ground rent payable was £45 invoiced every twelve months. The lease concluded in 2099. Having 73 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.