When it comes to long leasehold property in Ulverston, you are in fact renting it for a certain period of time. In recent years 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 extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Anyone in Ulverston with a lease approaching 81 years unexpired should seriously think of extending it without delay. When the lease term has under eighty years remaining, under the relevant statute the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ulverston can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Ulverston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Callum, came critically near to the 80-year mark with the lease on his one bedroom flat in Ulverston. In buying his home 18 years ago, the length of the lease was of minimal interest. Fortunately, he became aware that he needed to take steps soon on a lease extension. Callum extended the lease just under the wire last March. Callum and the landlord subsequently settled on an amount of £5,500 . If he failed to meet the deadline, the price would have gone up by at least £1,125.
Last Winter we were contacted by Mr and Mrs. C Davies , who was assigned a lease of a recently refurbished flat in Ulverston in May 1999. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable homes in Ulverston with a long lease were worth £198,400. The average ground rent payable was £65 invoiced yearly. The lease terminated in 2084. Taking into account 59 years remaining we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus costs.
In 2009 we were phoned by Dr M Patel who, having took over the lease of a purpose-built apartment in Ulverston in August 2008. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable properties in Ulverston with an extended lease were worth £255,000. The average ground rent payable was £50 billed annually. The lease concluded on 26 March 2095. Taking into account 70 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.