The re-sale value of a leasehold property in Anston depends on how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed well before the eighty year mark. Statute entitles Anston qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Anston with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Chelsea Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Anston can be a difficult process. We recommend you get guidance from a conveyancer 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 Anston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Henry owned a studio apartment in Anston on the market with a lease of just over 59 years unexpired. Henry informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Henry to exercise his statutory right. Henry obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
In 2010 we were contacted by Dr S Davis who, having purchased a purpose-built flat in Anston in May 2003. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable flats in Anston with 100 year plus lease were valued about £210,000. The average ground rent payable was £50 billed per annum. The lease elapsed in 2105. Considering the 80 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
Last year we were called by Dr Hannah Clarke , who owned a one bedroom apartment in Anston in April 2000. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Anston with a long lease were worth £275,000. The average ground rent payable was £45 invoiced yearly. The lease expired in 2094. Considering the 69 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.