When it comes to long leasehold premises in Woolacombe, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about 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 especially once there are fewer than 80 years remaining. Residents in Woolacombe with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has less than eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Woolacombe,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woolacombe valuers.
In the wake of eight months of protracted discussions with the freeholder of her first floor apartment in Woolacombe, Isobel commenced the lease extension process just as her lease was approaching the all-important 80-year mark. The legal work was concluded in April 2015. The freeholder’s costs were restricted to under 500 GBP.
In 2010 we were phoned by Dr F Peterson who, having took over the lease of a one bedroom apartment in Woolacombe in April 2003. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Identical flats in Woolacombe with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 billed monthly. The lease terminated on 19 January 2085. Taking into account 59 years left we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of legals.
In 2012 we were contacted by Mr Tyler Lambert who, having moved into a basement flat in Woolacombe in January 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Woolacombe with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 collected per annum. The lease expiry date was on 9 March 2105. Considering the 79 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.