The market value of a leasehold property in Bagshot is impacted by how long the lease has left to run. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised well before the 80 year threshold. Leasehold Reform legislation entitles Bagshot 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 intention 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 residencies in Bagshot with over one hundred 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 upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Santander | |
| The Mortgage Works |
Engaging our service will provide you increased control over the value of your Bagshot leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jack, came perilously close to the 80-year mark with the lease on his purpose- built flat in Bagshot. Having bought his flat two decades ago, the length of the lease was of minimal importance. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Jack arranged for a lease extension at the eleventh hour in March. Jack and the landlord who owned the flat above in the end settled on sum of £5,000 . If the lease had dipped below 80 years, the price would have become more exhorbitant by a minimum £875.
In 2010 we were e-mailed by Dr Jonathan Davis who, having owned a garden flat in Bagshot in October 2007. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Bagshot with an extended lease were valued about £191,000. The average ground rent payable was £65 collected monthly. The lease ran out in 2084. Given that there were 58 years unexpired we calculated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including expenses.
Mr and Mrs. U Miller owned a ground floor flat in Bagshot in August 2010. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative premises in Bagshot with a long lease were in the region of £250,000. The average ground rent payable was £50 billed yearly. The lease ended on 12 March 2095. Given that there were 69 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.