With a long leasehold premises in Barnstaple, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years left. Anyone in Barnstaple with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has less than 80 years left, under the current statute the landlord is entitled to calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Barnstaple with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
Using our service gives you increased control over the value of your Barnstaple leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jack, came seriously close to the 80-year threshold with the lease on his garden flat in Barnstaple. Having purchased his home two decades ago, the length of the lease was of little importance. by good luck, he noticed he would imminently be paying an inflated amount for a lease extension. Jack arranged for a lease extension at the eleventh hour last September. Jack and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If the lease had slipped to less than 80 years, the price would have escalated by at least £1,150.
Last Spring we were e-mailed by Mr C Martinez , who completed a garden apartment in Barnstaple in September 2005. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Similar residencies in Barnstaple with 100 year plus lease were valued around £254,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 16 July 2077. Taking into account 51 years remaining we estimated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of legals.
Dr Maisie Bell was assigned a lease of a purpose-built apartment in Barnstaple in January 2000. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative homes in Barnstaple with an extended lease were worth £210,600. The average amount of ground rent was £45 collected per annum. The lease termination date was on 17 February 2088. Having 62 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 not including costs.