The market value of a leasehold property in Alexandra Park depends on how long the lease has remaining. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that formalities can be finalised prior to the 80 year mark. Current legislation entitles Alexandra Park qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The reason 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 Alexandra Park with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Santander | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Alexandra Park,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Alexandra Park valuers.
Isaac owned a high value apartment in Alexandra Park being sold with a lease of a little over 61 years outstanding. Isaac informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Dr Erin Wright purchased a one bedroom apartment in Alexandra Park in May 2005. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical properties in Alexandra Park with an extended lease were valued about £230,800. The mid-range ground rent payable was £60 invoiced yearly. The lease terminated on 6 May 2086. Taking into account 60 years remaining we estimated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Alexandra Park premises is Flat B 10 Grove Avenue in October 2013. Following a vesting order Clerkenwell and Shoreditch County Court 3rd July 2013 The tribunal determines that the premium payable for the lease extension was £36,215.00 This case was in relation to 1 flat. The unexpired residue of the current lease was 65.21 years.