The re-sale value of a leasehold property in Barry Island is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed well before the 80 year threshold. Current legislation enables Barry Island qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount 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 further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
Using our service gives you increased control over the value of your Barry Island leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Henry, came seriously close to the eighty-year threshold with the lease on his garden flat in Barry Island. Having bought his property twenty years ago, the length of the lease was of little interest. Fortunately, he realised he needed to take steps soon on a lease extension. Henry extended the lease just ahead of time last August. Henry and the freeholder via the management company in the end settled on sum of £5,000 . If the lease had slipped lower than 80 years, the price would have become more exhorbitant by at least £975.
Last Christmas we were contacted by Mrs Freya Rose , who purchased a first floor apartment in Barry Island in February 2007. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar homes in Barry Island with a long lease were valued about £254,200. The average amount of ground rent was £60 invoiced monthly. The lease lapsed in 2077. Having 51 years outstanding we estimated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of costs.
Mr and Mrs. S Gómez owned a first floor apartment in Barry Island in February 1999. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Identical flats in Barry Island with an extended lease were in the region of £210,600. The mid-range ground rent payable was £45 collected annually. The lease ended in 2088. Given that there were 62 years remaining we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of fees.