When it comes to domestic leasehold premises in Ulverston, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years remaining. Leasehold owners in Ulverston with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once the lease term has fewer than eighty years outstanding, under the relevant statute the freeholder can calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Ulverston leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her leasehold apartment in Ulverston, Holly commenced the lease extension process just as the lease was nearing the crucial eighty-year mark. The transaction was finalised in October 2005. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. L Lefèvre completed a ground floor apartment in Ulverston in August 2009. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Identical homes in Ulverston with a long lease were worth £250,000. The mid-range ground rent payable was £50 collected monthly. The lease concluded on 13 September 2094. Considering the 69 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
In 2014 we were contacted by Dr James Patel who, having moved into a one bedroom apartment in Ulverston in November 2008. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative flats in Ulverston with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 billed annually. The lease lapsed on 3 May 2105. Taking into account 80 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.