The re-sale value of a leasehold property in Farnham Royal is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be finalised in advance of the 80 year threshold. Current legislation enables Farnham Royal qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). 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 accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Santander | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Farnham Royal can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 a wealth of experience dealing with Farnham Royal lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the landlord of her leasehold apartment in Farnham Royal, Eleanor started the lease extension process as the 80 year mark was swiftly advancing. The transaction completed in January 2007. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were called by Mr and Mrs. J Rivera who, having was assigned a lease of a first floor flat in Farnham Royal in July 1997. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Farnham Royal with a long lease were valued about £225,400. The mid-range amount of ground rent was £45 invoiced quarterly. The lease terminated on 16 April 2090. Given that there were 64 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 plus fees.
Mr R Mason acquired a basement apartment in Farnham Royal in July 2003. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable properties in Farnham Royal with a long lease were worth £270,000. The average ground rent payable was £55 collected per annum. The lease terminated in 2101. Given that there were 75 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.