When it comes to residential leasehold premises in Tring, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Tring with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has under 80 years remaining, under the relevant statute the landlord can calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Tring with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with procure Tring 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.
Andrew owned a studio flat in Tring on the market with a lease of just over 61 years outstanding. Andrew informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Autumn we were contacted by Mr L Cox , who took over the lease of a one bedroom flat in Tring in January 2011. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Tring with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 billed yearly. The lease concluded in 2103. Considering the 77 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
In 2009 we were phoned by Mr V Adams who, having completed a one bedroom flat in Tring in March 2009. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative premises in Tring with an extended lease were in the region of £265,200. The average amount of ground rent was £65 collected annually. The lease lapsed on 24 July 2092. Taking into account 66 years remaining we approximated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 plus expenses.