When it comes to residential leasehold premises in Handforth, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years remaining. Leasehold owners in Handforth with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has under 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Handforth with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Lease extensions in Handforth can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Handforth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan owned a high value flat in Handforth being marketed with a lease of fraction over 59 years outstanding. Nathan on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were phoned by Dr Alexandra Edwards who, having bought a basement apartment in Handforth in February 2004. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical flats in Handforth with 100 year plus lease were in the region of £233,200. The average ground rent payable was £60 collected monthly. The lease finished in 2087. Given that there were 61 years unexpired we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including expenses.
Ms Harriet López acquired a purpose-built flat in Handforth in March 2010. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable residencies in Handforth with 100 year plus lease were valued about £171,800. The mid-range amount of ground rent was £55 invoiced per annum. The lease lapsed on 5 August 2076. Given that there were 50 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including legals.