When it comes to long leasehold premises in Water Orton, you effectively rent it for a certain period of time. 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 may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years left. Residents in Water Orton with a lease nearing 81 years remaining should seriously think of extending it sooner than later. When a lease has below eighty years outstanding, under the relevant legislation the landlord is entitled to calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Water Orton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Water Orton valuers.
Following protracted discussions with the freeholder of her ground floor apartment in Water Orton, Amy started the lease extension process as the eighty year threshold was rapidly coming. The legal work was finalised in January 2014. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were phoned by Dr G Martinez who, having acquired a recently refurbished apartment in Water Orton in July 1998. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar premises in Water Orton with an extended lease were in the region of £267,600. The average amount of ground rent was £65 invoiced yearly. The lease ended in 2092. Taking into account 67 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus costs.
In 2014 we were called by Dr H Martinez who, having purchased a purpose-built flat in Water Orton in September 2000. The question was if we could estimate the price could be for a ninety year extension to my lease. Identical premises in Water Orton with an extended lease were in the region of £201,200. The average ground rent payable was £55 collected every twelve months. The lease finished on 17 April 2081. Taking into account 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of legals.