When it comes to residential leasehold property in Tickton, you are actually buying a right to live in a property for a set period of time. These days 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 a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years remaining. Anyone in Tickton with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When a lease has under eighty years remaining, under the current statute the landlord is entitled to calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Tickton with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Tickton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tickton valuers.
Jude owned a 2 bedroom apartment in Tickton being marketed with a lease of a few days over 59 years remaining. Jude on an informal basis contacted his freeholder being a well known Bristol-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. Ordinarily, ground rent would not be payable on a lease extension were Jude to invoke his statutory right. Jude procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Last Autumn we were contacted by Dr Phoebe Clark , who owned a one bedroom flat in Tickton in June 2008. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable homes in Tickton with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease concluded on 26 June 2088. Taking into account 62 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including costs.
In 2014 we were contacted by Dr Edward Roux who, having took over the lease of a one bedroom apartment in Tickton in October 1996. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Similar flats in Tickton with a long lease were valued around £174,200. The average ground rent payable was £55 billed yearly. The lease lapsed in 2077. Given that there were 51 years left we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus legals.