The market value of a leasehold property in Askam In Furness depends on how long the lease has left to run. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that a lease extension can be addressed in advance of the 80 year cut off point. Leasehold Reform legislation entitles Askam In Furness qualifying lessees to obtain a lease extension of ninety 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 acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| Halifax |
Engaging our service will provide you increased control over the value of your Askam In Furness leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her ground floor apartment in Askam In Furness, Jade initiated the lease extension process just as the lease was nearing the crucial eighty-year threshold. The lease extension was concluded in May 2014. The freeholder’s costs were negotiated to below 600 GBP.
Last Winter we were e-mailed by Mr Edward Brown , who moved into a first floor apartment in Askam In Furness in June 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable properties in Askam In Furness with 100 year plus lease were valued about £210,000. The mid-range amount of ground rent was £50 collected monthly. The lease lapsed on 7 September 2106. Having 80 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.
Last year we were contacted by Dr Caleb Davis , who took over the lease of a first floor flat in Askam In Furness in September 2006. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Identical flats in Askam In Furness with a long lease were valued around £275,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished on 25 March 2095. Taking into account 69 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.