With a domestic leasehold premises in Wellingborough, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear 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 notably when there are less than eighty years left. Residents in Wellingborough with a lease nearing 81 years left should seriously consider extending it sooner rather than later. Once the lease term has below 80 years outstanding, under the relevant Act the landlord can calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Santander | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The lawyers that we work with procure Wellingborough 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.
Following lengthy negotiations with the landlord of her purpose-built apartment in Wellingborough, Jennifer commenced the lease extension process just as the lease was nearing the critical 80-year threshold. The lease extension was finalised in June 2005. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. F Wilson acquired a studio apartment in Wellingborough in July 1998. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Wellingborough with a long lease were in the region of £205,000. The average ground rent payable was £50 billed monthly. The lease ended on 1 April 2105. Taking into account 79 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
In 2011 we were approached by Mr and Mrs. P Leroy who, having was assigned a lease of a garden flat in Wellingborough in October 1997. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Wellingborough with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £65 collected per annum. The lease came to a finish in 2094. Having 68 years outstanding we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.