With a residential leasehold property in Temple Fortune, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years left. Anyone in Temple Fortune with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once a lease has fewer than 80 years left, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Temple Fortune,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Temple Fortune valuers.
Trailing protracted negotiations with the landlord of her garden apartment in Temple Fortune, Lily commenced the lease extension process as the 80 year threshold was fast approaching. The transaction was concluded in January 2015. The freeholder’s costs were restricted to under 700 pounds.
Last Christmas we were approach by Mr and Mrs. S Patel , who was assigned a lease of a first floor apartment in Temple Fortune in April 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar properties in Temple Fortune with an extended lease were valued about £250,400. The mid-range ground rent payable was £65 invoiced monthly. The lease ended on 17 February 2090. Taking into account 64 years left we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Temple Fortune premises is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case related to 1 flat. The number of years remaining on the existing lease(s) was 76 years.