With a long leasehold property in Wombwell, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in Wombwell with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has fewer than 80 years outstanding, under the current legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Wombwell with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Retaining our service gives you better control over the value of your Wombwell leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luca owned a studio apartment in Wombwell being sold with a lease of just over 59 years outstanding. Luca informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Luca to invoke his statutory right. Luca procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2012 we were approached by Dr Alex King who, having moved into a basement apartment in Wombwell in November 1996. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Wombwell with a long lease were valued about £210,600. The mid-range amount of ground rent was £45 collected yearly. The lease concluded in 2088. Having 62 years as a residual term we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of legals.
In 2012 we were phoned by Dr Theo Fournier who, having moved into a ground floor apartment in Wombwell in November 2000. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical homes in Wombwell with a long lease were valued about £265,000. The mid-range amount of ground rent was £50 billed monthly. The lease came to a finish in 2099. Having 73 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.