With a residential leasehold premises in Worsley, you are in fact renting it for a certain period of time. 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 may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Leasehold owners in Worsley with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has under eighty years outstanding, under the current Act the freeholder is entitled to calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Worsley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Worsley valuers.
Eliot owned a high value flat in Worsley on the market with a lease of a little over 59 years left. Eliot informally approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Eliot to invoke his statutory right. Eliot procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last Summer we were e-mailed by Mr and Mrs. I Ramírez , who owned a purpose-built apartment in Worsley in September 2004. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in Worsley with an extended lease were worth £243,000. The mid-range amount of ground rent was £65 collected per annum. The lease termination date was on 20 October 2089. Considering the 63 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus professional charges.
Last Autumn we were phoned by Ms Louise Patel , who moved into a purpose-built flat in Worsley in November 2012. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Similar residencies in Worsley with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 collected quarterly. The lease expired on 12 October 2078. Considering the 52 years left we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.