The re-sale value of a leasehold property in Greenfield is impacted by how long the lease has left to run. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded ahead of the 80 year mark. Current legislation entitles Greenfield qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Greenfield with in excess of 100 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Lease extensions in Greenfield can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 procuring Greenfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Omar was the the leasehold proprietor of a 2 bedroom flat in Greenfield on the market with a lease of a few days over sixty years remaining. Omar informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Omar to invoke his statutory right. Omar procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last Spring we were contacted by Dr Leon Thomas , who completed a studio flat in Greenfield in October 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparative homes in Greenfield with a long lease were worth £255,000. The mid-range ground rent payable was £50 collected annually. The lease expired in 2096. Considering the 71 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Dr Stanley Sánchez was assigned a lease of a newly refurbished flat in Greenfield in July 2004. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable residencies in Greenfield with an extended lease were worth £254,200. The average ground rent payable was £60 collected every twelve months. The lease terminated on 8 November 2076. Taking into account 51 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 plus expenses.