The market value of a leasehold property in Gerrards Cross depends on how long 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 the lease to be extended prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed well before the eighty year cut off point. Leasehold Reform legislation enables Gerrards Cross qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Gerrards Cross with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
Lender | Requirement |
---|---|
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Gerrards Cross lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Callum, came dangerously near to the 80-year mark with the lease on his ground floor flat in Gerrards Cross. In buying his property two decades ago, the length of the lease was of no bearing. As luck would have it, he realised he would soon be paying an inflated amount for Extending the lease. Callum was able to extend his lease just in the nick of time in May. Callum and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If the lease had dropped to less than 80 years, the premium would have escalated by a minimum £875.
Last Spring we were called by Mr and Mrs. J Carter , who was assigned a lease of a purpose-built flat in Gerrards Cross in April 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Gerrards Cross with 100 year plus lease were in the region of £240,600. The average ground rent payable was £60 billed quarterly. The lease elapsed in 2086. Considering the 62 years remaining we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Gerrards Cross premises is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case was in relation to 3 flats. The unexpired term was 71 years.