When it comes to residential leasehold property in Stow on the Wold, you are actually buying a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may 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. Leasehold owners in Stow on the Wold with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has below eighty years outstanding, under the current legislation the freeholder is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Stow on the Wold with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with procure Stow on the Wold 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.
Two years ago Elijah, started to get close to the eighty-year mark with the lease on his garden flat in Stow on the Wold. Having bought his property 19 years previously, the length of the lease was of no bearing. by good luck, he realised he needed to take steps soon on a lease extension. Elijah extended the lease at the eleventh hour last September. Elijah and the freeholder subsequently settled on an amount of £5,500 . If the lease had fallen below 80 years, the sum would have become more exhorbitant by at least £1,150.
Last Summer we were called by Mr S Smith , who purchased a first floor apartment in Stow on the Wold in July 2007. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Similar residencies in Stow on the Wold with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 invoiced quarterly. The lease came to a finish in 2079. Given that there were 53 years remaining we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 plus legals.
In 2009 we were phoned by Dr Tyler López who, having moved into a one bedroom flat in Stow on the Wold in March 2007. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative residencies in Stow on the Wold with an extended lease were in the region of £225,400. The average amount of ground rent was £45 invoiced annually. The lease end date was in 2090. Given that there were 64 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 not including expenses.