The market value of a leasehold property in Fallowfield depends on how many years the lease has remaining. If it is near to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be addressed in advance of the eighty year cut off point. Leasehold Reform legislation enables Fallowfield qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Fallowfield with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Fallowfield,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fallowfield valuers.
Last year Jack, came very close to the 80-year threshold with the lease on his first floor apartment in Fallowfield. In buying his home two decades ago, the unexpired term was of minimal interest. As luck would have it, he realised he needed to take steps soon on Extending the lease. Jack arranged for a lease extension at the eleventh hour last April. Jack and the freeholder via the managing agents in the end settled on an amount of £5,000 . If he not met the deadline, the sum would have gone up by at least £1,075.
Last Summer we were e-mailed by Mr and Mrs. M Lee , who completed a basement flat in Fallowfield in August 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Fallowfield with a long lease were valued about £249,200. The mid-range amount of ground rent was £60 collected yearly. The lease terminated in 2076. Having 51 years left we estimated the premium to the landlord to extend the lease to be between £42,800 and £49,400 plus professional charges.
Dr C Torres bought a ground floor apartment in Fallowfield in January 2001. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Fallowfield with a long lease were worth £210,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed in 2087. Taking into account 62 years outstanding we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including professional charges.