The re-sale value of a leasehold property in Arkley depends on how long the lease has left to run. If it is near to or less than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be addressed well before the 80 year mark. Leasehold Reform legislation entitles Arkley qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Arkley leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her purpose-built apartment in Arkley, Olivia started the lease extension process just as the lease was approaching the critical 80-year threshold. The legal work completed in August 2011. The landlord’s charges were negotiated to under 600 GBP.
In 2014 we were e-mailed by Mr and Mrs. W Ward who, having acquired a newly refurbished apartment in Arkley in September 1999. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative homes in Arkley with a long lease were worth £210,000. The average amount of ground rent was £50 billed monthly. The lease ran out on 21 February 2106. Considering the 80 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.
An example of a Lease Extension matter before the tribunal for a Arkley property is Ground Floor Maisonette 17 Milton Road in January 2014. The Tribunal determined the premium payable by the Applicant to the should be £13,299 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 71.73 years.