The re-sale value of a leasehold property in Barrow Upon Soar is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed prior to the 80 year threshold. Leasehold Reform legislation enables Barrow Upon Soar qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining 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.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| National Westminster Bank | |
| Santander | |
| TSB | |
| Royal Bank of Scotland |
Retaining our service gives you better control over the value of your Barrow Upon Soar leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ollie owned a high value flat in Barrow Upon Soar on the market with a lease of a little over 59 years remaining. Ollie informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Ollie to invoke his statutory right. Ollie procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Mr T Williams completed a studio flat in Barrow Upon Soar in November 2008. The question was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative flats in Barrow Upon Soar with 100 year plus lease were valued about £171,800. The mid-range ground rent payable was £55 invoiced annually. The lease expired in 2076. Taking into account 50 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.
In 2014 we were contacted by Dr W Petit who, having purchased a ground floor flat in Barrow Upon Soar in February 2004. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar premises in Barrow Upon Soar with a long lease were in the region of £280,000. The average ground rent payable was £45 billed per annum. The lease elapsed in 2096. Taking into account 70 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.