When it comes to domestic leasehold premises in Townhill, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about 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 gets disproportionately greater particularly once there are less than 80 years remaining. Leasehold owners in Townhill with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has less than eighty years remaining, under the current legislation the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Townhill with more than 100 years outstanding on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Townhill can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Townhill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix owned a conversion apartment in Townhill being marketed with a lease of a little over fifty eight years left. Felix informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Felix to invoke his statutory right. Felix procured expert advice and secured an acceptable resolution informally and readily saleable.
Last Summer we were phoned by Mrs Abigail Ramírez , who bought a ground floor apartment in Townhill in March 2008. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable premises in Townhill with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed in 2091. Given that there were 66 years outstanding we estimated the premium to the landlord for the lease extension to be within £16,200 and £18,600 not including professional charges.
In 2009 we were approached by Mr and Mrs. K Edwards who, having bought a one bedroom apartment in Townhill in September 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in Townhill with a long lease were worth £198,800. The average ground rent payable was £55 billed yearly. The lease concluded on 7 February 2080. Considering the 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including professional charges.