With a domestic leasehold premises in Long Eaton, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Leasehold owners in Long Eaton with a lease approaching 81 years left should seriously think of extending it sooner rather than later. Once a lease has under eighty years left, under the current statute the freeholder is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over 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 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with procure Long Eaton 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 conveyancer we work with provide it.
Half a year ago Teddy, came critically near to the 80-year mark with the lease on his one bedroom apartment in Long Eaton. Having purchased his property 18 years previously, the lease term was of no importance. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Teddy extended the lease just under the wire last May. Teddy and the freeholder eventually agreed on sum of £5,000 . If the lease had dipped lower than 80 years, the sum would have become more exhorbitant by a minimum £1,100.
In 2013 we were contacted by Mr and Mrs. N Alexander who, having completed a purpose-built flat in Long Eaton in August 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Long Eaton with a long lease were in the region of £166,800. The mid-range amount of ground rent was £50 billed per annum. The lease terminated in 2075. Taking into account 50 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.
In 2014 we were e-mailed by Mr Finn Johnson who, having acquired a studio flat in Long Eaton in June 1995. The question was if we could estimate the price would be for a ninety year lease extension. Comparative premises in Long Eaton with an extended lease were valued about £280,000. The average ground rent payable was £45 invoiced annually. The lease ran out on 18 August 2095. Considering the 70 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.