With a domestic leasehold property in Totland, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years remaining. Residents in Totland with a lease nearing 81 years left should seriously consider extending it as soon as possible. When a lease has below eighty years remaining, under the relevant statute the landlord can calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Nationwide Building Society | |
| Santander | |
| TSB | |
| Virgin |
The lawyers that we work with undertake Totland lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In recent months Harvey, came critically close to the 80-year mark with the lease on his purpose- built apartment in Totland. Having purchased his property two decades ago, the length of the lease was of little relevance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Harvey extended the lease at the eleventh hour in August. Harvey and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If he not met the deadline, the sum would have escalated by at least £875.
Last year we were called by Ms Rachel Brooks , who acquired a basement flat in Totland in May 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Totland with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 collected quarterly. The lease ended in 2102. Having 76 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2012 we were phoned by Dr Adam Wood who, having owned a one bedroom flat in Totland in March 1997. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar flats in Totland with a long lease were in the region of £176,200. The average amount of ground rent was £65 billed every twelve months. The lease concluded in 2082. Having 56 years left we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including professional charges.