When it comes to long leasehold property in Trowbridge, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years remaining. Residents in Trowbridge with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has below 80 years outstanding, under the current Act the freeholder can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Trowbridge 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Skipton Building Society |
The conveyancers that we work with handle Trowbridge 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.
Aaron owned a high value apartment in Trowbridge being sold with a lease of fraction over sixty years remaining. Aaron on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Aaron to exercise his statutory right. Aaron procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2013 we were called by Dr F Parker who, having took over the lease of a first floor apartment in Trowbridge in November 1997. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable premises in Trowbridge with an extended lease were worth £295,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated in 2101. Taking into account 75 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.
Mr G Williams moved into a purpose-built apartment in Trowbridge in October 2010. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative properties in Trowbridge with a long lease were worth £250,400. The average amount of ground rent was £65 invoiced every twelve months. The lease finished on 22 February 2090. Given that there were 64 years unexpired we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus professional charges.