The market value of a leasehold property in Arundel depends on how long the lease has left to run. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised prior to the eighty year mark. Leasehold Reform legislation entitles Arundel qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Arundel with over 100 years unexpired on the lease are sometimes 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Santander | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with undertake Arundel 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 conveyancing solicitor we work with provide it.
Last October Thomas, started to get near to the eighty-year mark with the lease on his ground floor flat in Arundel. In buying his flat twenty years previously, the lease term was of no relevance. by good luck, he recognised he needed to take steps soon on Extending the lease. Thomas was able to extend his lease at the eleventh hour in July. Thomas and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If the lease had slid below eighty years, the figure would have gone up by a minimum £950.
Last year we were called by Ms Shannon Clark , who owned a basement apartment in Arundel in April 1996. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable properties in Arundel with 100 year plus lease were in the region of £168,800. The average ground rent payable was £60 invoiced yearly. The lease came to a finish in 2081. Taking into account 55 years remaining we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including legals.
In 2011 we were contacted by Ms U Peterson who, having was assigned a lease of a first floor apartment in Arundel in April 2002. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical properties in Arundel with a long lease were in the region of £235,200. The average amount of ground rent was £45 collected quarterly. The lease terminated on 7 October 2092. Considering the 66 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.