The market value of a leasehold property in Lisson Grove depends on how long the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised well before the eighty year mark. Leasehold Reform legislation entitles Lisson Grove qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Retaining our service gives you better control over the value of your Lisson Grove leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Jason, came seriously near to the eighty-year threshold with the lease on his first floor apartment in Lisson Grove. In buying his property 19 years previously, the unexpired term was of minimal concern. Thankfully, he realised he needed to take steps soon on a lease extension. Jason was able to extend his lease at the eleventh hour in September. Jason and the freeholder via the management company in the end settled on an amount of £5,000 . If the lease had dropped below 80 years, the amount would have escalated by a minimum £1,150.
In 2011 we were phoned by Ms A Moreau who, having acquired a recently refurbished flat in Lisson Grove in June 1999. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparable properties in Lisson Grove with a long lease were in the region of £225,800. The average amount of ground rent was £60 collected per annum. The lease terminated on 7 November 2086. Having 60 years remaining we estimated the premium to the landlord for the lease extension to be between £25,700 and £29,600 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Lisson Grove flat is Flats 37 & 39 88/90 Portland Place in December 2010. The Tribunal determined that the premium payable for the lease extensions in respect of these two flats is as follows:- For Flat 37, the sum of £385,230.00 For Flat 39, the sum of £436,780.00 This case affected 2 flats. The unexpired term was 24.02 years.