UK Landlord Forum / Life

Hi...looking to sell a leasehold property to the freeholder and want to calculate the value (marriage value) to the freeholder...

Hey Nods, welcome to the forum.

You'll most likely need a chartered surveyor to get you anywhere near enough a real accurate evaulation.
He/she will be able to tell you how much it is worth.

Where the lease has less than 80 years to go, there is what's known as a 'marriage value'. With that in mind, you could work out an estimate if you know how long is left on the lease and how much the property is worth...

How much does it generally cost to renew a lease?

Think I have about 85 years left on mine at the moment, but it does unsettle me from time to time that if I keep the place as an investment then in the end someone may have to pay the value of it all over again to "keep owning it". Seems like a bit of a swizz to me.


V

For better or for worse my V for better or for worse. 

V, you seriously need to renew your lease! Once a lease starts to approach the low 80 years, you'll have to pay loads to extend it!!

I think you'd have a hard time selling your property with such a short lease, V.

And for those of you who don't bother checking the main site (you asses ), you'll probably fail to appreciate how well timed this thread is, because last night I actually wrote an article on leases.

A guide on extending leases

That's bizarre, because when I bought the place 18 months ago I was told by my solicitor that a lease of 86 years was not an issue at all.

Is there anyone in this world you can rely on to do their f************* job properly?



V

PS. Your article seems confused - it details extending the lease, but also describes not having to pay ground rent any more (which surely would only be the case if you buy the freehold). Also, I've not owned the place long enough to become eligible by the sounds of things, and have another 4-5 years to extend without incurring marriage value according to the article (which suggests it becomes increasingly more when the remaining lease is *under* 80 years, not *close to* 80 years)

PPS. Apologies if that seemed overly critical - its been a particularly frustrating day.

Nope, applies to the leaseholder as well...

When you extend your lease to 90+, you're able to get what is known as peppercorn ground rent...

I was just being dramatic when I said it's more expensive when it's close to the early 80 mark. But the point is, when you're approaching 5 years, it's not really that much time at all.

I guess not. Just as well I'll be here two years within that time.


V