With a domestic leasehold property in West Haddon, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Residents in West Haddon with a lease drawing near to 81 years left should seriously consider extending it sooner than later. Once the lease term has below 80 years outstanding, under the relevant Act the freeholder can calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Retaining our service will provide you better control over the value of your West Haddon leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Sam owned a high value flat in West Haddon being sold with a lease of just over 72 years remaining. Sam informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Sam to exercise his statutory right. Sam obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last year we were phoned by Mrs P Roux , who acquired a newly refurbished flat in West Haddon in January 2012. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar homes in West Haddon with 100 year plus lease were worth £260,200. The average amount of ground rent was £65 collected yearly. The lease terminated in 2091. Taking into account 66 years remaining we estimated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of costs.
Dr Paige Reed owned a one bedroom flat in West Haddon in June 2002. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Identical flats in West Haddon with 100 year plus lease were valued about £198,800. The average amount of ground rent was £55 collected quarterly. The lease lapsed in 2080. Taking into account 55 years left we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.