When it comes to domestic leasehold property in Worsley, you are actually buying 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. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Residents in Worsley with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has under eighty years outstanding, under the current Act the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle Worsley 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 conveyancing solicitor we work with provide it.
In recent months George, started to get close to the 80-year mark with the lease on his studio flat in Worsley. Having bought his home 18 years previously, the unexpired term was of no bearing. Thankfully, it dawned on him that he would soon be paying an escalated premium for a lease extension. George was able to extend his lease just ahead of time in May. George and the landlord who owned the flat above ultimately settled on sum of £5,000 . If he failed to meet the deadline, the sum would have escalated by at least £1,025.
Mrs R Gray was assigned a lease of a one bedroom flat in Worsley in February 2011. We are asked if we could estimate the price could be for a ninety year lease extension. Similar properties in Worsley with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 collected per annum. The lease ran out in 2079. Having 53 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.
Last Summer we were called by Dr B Allen , who bought a ground floor apartment in Worsley in October 2009. We are asked if we could approximate the price could be for a 90 year lease extension. Similar residencies in Worsley with 100 year plus lease were valued about £290,000. The average ground rent payable was £45 invoiced every twelve months. The lease came to a finish on 27 March 2099. Having 73 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.