The re-sale value of a leasehold property in Abbots Bromley depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be concluded in advance of the eighty year threshold. Current legislation enables Abbots Bromley qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason 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 accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with handle Abbots Bromley 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 lawyer we work with provide it.
Harvey was the the leasehold owner of a high value flat in Abbots Bromley on the market with a lease of a few days over 61 years unexpired. Harvey on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Dr S White bought a garden apartment in Abbots Bromley in April 2008. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical properties in Abbots Bromley with 100 year plus lease were valued around £267,600. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed on 13 May 2092. Taking into account 67 years left we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 plus expenses.
Last Winter we were contacted by Dr C François , who bought a studio flat in Abbots Bromley in July 1999. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Abbots Bromley with an extended lease were in the region of £201,200. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease concluded on 8 November 2081. Having 56 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.