The market value of a leasehold property in Bebington depends on how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that formalities can be addressed ahead of the 80 year threshold. Current legislation entitles Bebington qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a notional rent (zero ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Bebington with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Bebington leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Teddy, came dangerously near to the eighty-year mark with the lease on his one bedroom flat in Bebington. Having bought his property 18 years previously, the unexpired term was of no significance. Fortunately, he realised he needed to take action soon on a lease extension. Teddy extended the lease just in the nick of time last June. Teddy and the freeholder via the management company in the end settled on a premium of £6,000 . If he had missed the deadline, the premium would have escalated by at least £1,150.
In 2012 we were phoned by Mrs Rachel Garcia who, having moved into a studio apartment in Bebington in February 1999. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar flats in Bebington with a long lease were valued around £257,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease terminated on 8 September 2090. Taking into account 65 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus legals.
Mrs U Martinez bought a basement apartment in Bebington in February 1997. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparable homes in Bebington with an extended lease were in the region of £191,400. The mid-range amount of ground rent was £55 collected monthly. The lease concluded in 2079. Considering the 54 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 not including legals.