With a long leasehold premises in Little Burstead, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years left. Leasehold owners in Little Burstead with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once the lease term has below 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Little Burstead with in excess of one hundred years unexpired 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Skipton Building Society |
The lawyers that we work with undertake Little Burstead 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 lawyer we work with provide it.
Off the back of unsuccessful correspondence with the landlord of her first floor apartment in Little Burstead, Millie started the lease extension process just as her lease was nearing the critical 80-year deadline. The transaction was finalised in February 2005. The freeholder’s costs were restricted to below 700 GBP.
Mr N Young took over the lease of a recently refurbished flat in Little Burstead in March 2005. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar flats in Little Burstead with 100 year plus lease were valued around £166,800. The mid-range amount of ground rent was £50 billed yearly. The lease expired in 2076. Considering the 50 years remaining we calculated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.
Last January we were e-mailed by Mr and Mrs. U Sánchez , who took over the lease of a studio apartment in Little Burstead in March 2002. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparative flats in Little Burstead with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 billed per annum. The lease terminated on 24 April 2096. Having 70 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.