The re-sale value of a leasehold property in Ely is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be addressed prior to the 80 year threshold. Current legislation enables Ely qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland |
Lease extensions in Ely can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Ely lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harrison was the the leasehold proprietor of a high value apartment in Ely being marketed with a lease of a few days over 61 years left. Harrison on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and secured an acceptable deal informally and sell the property.
Last Winter we were called by Dr Jade Michel , who took over the lease of a newly refurbished apartment in Ely in January 2001. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Ely with a long lease were in the region of £280,000. The average amount of ground rent was £45 collected yearly. The lease came to a finish in 2096. Having 70 years unexpired we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
Last Winter we were e-mailed by Mr and Mrs. L Campbell , who purchased a one bedroom flat in Ely in October 2011. The question was if we could approximate the price would be to extend the lease by a further 90 years. Comparative properties in Ely with an extended lease were worth £223,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease came to a finish in 2085. Having 59 years unexpired we approximated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus legals.