The market value of a leasehold property in Appleton is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the eighty year threshold. Leasehold Reform legislation entitles Appleton qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Appleton with over 100 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Appleton can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 dealing with Appleton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac was the the leasehold proprietor of a high value flat in Appleton being marketed with a lease of fraction over 61 years outstanding. Isaac informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2014 we were approached by Dr Jude Morel who, having was assigned a lease of a first floor apartment in Appleton in November 2003. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative residencies in Appleton with a long lease were valued around £285,000. The mid-range ground rent payable was £45 billed yearly. The lease expired on 5 June 2097. Taking into account 72 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
Last Summer we were contacted by Mr V Bennett , who purchased a studio apartment in Appleton in September 2012. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative properties in Appleton with 100 year plus lease were worth £233,200. The average ground rent payable was £60 billed per annum. The lease ran out on 16 October 2086. Given that there were 61 years as a residual term we approximated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus fees.