The re-sale value of a leasehold property in Easthampstead depends on how long the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded ahead of the eighty year threshold. Statute enables Easthampstead qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Easthampstead with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Easthampstead leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the landlord of her leasehold apartment in Easthampstead, Danielle commenced the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work was finalised in June 2005. The landlord’s costs were kept to an absolute minimum.
Mr Finn Davies purchased a studio flat in Easthampstead in February 2006. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparable residencies in Easthampstead with a long lease were valued around £210,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ran out in 2105. Taking into account 80 years left we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
Dr Georgia Smith moved into a one bedroom apartment in Easthampstead in July 2008. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparable properties in Easthampstead with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease expired on 28 August 2094. Having 69 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.