The market value of a leasehold property in Belbroughton is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded well before the eighty year mark. Leasehold Reform legislation entitles Belbroughton qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). 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.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately 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 in the future.
| 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. |
| Chelsea Building Society | 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 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. |
Retaining our service will provide you enhanced control over the value of your Belbroughton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jayden was the the leasehold proprietor of a 2 bedroom flat in Belbroughton being marketed with a lease of just over sixty years left. Jayden on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Mrs G Lefèvre purchased a studio apartment in Belbroughton in July 2005. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative flats in Belbroughton with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced monthly. The lease lapsed in 2101. Given that there were 76 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
Mr N Morel was assigned a lease of a recently refurbished apartment in Belbroughton in July 2001. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical homes in Belbroughton with 100 year plus lease were valued around £257,800. The mid-range amount of ground rent was £65 billed monthly. The lease finished in 2090. Given that there were 65 years outstanding we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including fees.