The re-sale value of a leasehold property in Shaftesbury depends on how long the lease has left to run. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed ahead of the 80 year mark. Statute enables Shaftesbury qualifying lessees to a ninety 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 intention 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.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Lease extensions in Shaftesbury can be a difficult process. We recommend you get guidance from a lawyer and valuer 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 procuring Shaftesbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin owned a studio apartment in Shaftesbury on the market with a lease of fraction over fifty eight years left. Benjamin on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were approached by Dr Blake Thomas who, having completed a one bedroom flat in Shaftesbury in January 2001. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable flats in Shaftesbury with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 billed yearly. The lease ran out in 2098. Having 72 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
In 2009 we were contacted by Mrs Kirsty Girard who, having moved into a one bedroom flat in Shaftesbury in January 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Shaftesbury with an extended lease were valued around £233,200. The mid-range amount of ground rent was £60 billed quarterly. The lease ended on 25 November 2087. Taking into account 61 years left we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of costs.