The re-sale value of a leasehold property in Belper is impacted by how long the lease has left to run. If it is close to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed prior to the 80 year mark. Leasehold Reform legislation entitles Belper qualifying lessees to an additional term of ninety years in addition to the existing term, at a nominal rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Belper with more than one hundred years left 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Santander |
Regardless of whether you are a tenant or a freeholder in Belper,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Belper valuers.
After unsuccessful correspondence with the landlord of her garden apartment in Belper, Jordan commenced the lease extension process just as her lease was approaching the critical 80-year threshold. The lease extension was finalised in August 2009. The freeholder’s costs were restricted to under 650 GBP.
Last month we were phoned by Dr Paige Martinez , who was assigned a lease of a studio apartment in Belper in February 2009. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Belper with an extended lease were worth £183,600. The average ground rent payable was £65 invoiced per annum. The lease finished in 2083. Given that there were 57 years remaining we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
In 2009 we were approached by Dr Michael Gunderson who, having purchased a one bedroom apartment in Belper in October 2002. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable properties in Belper with an extended lease were valued around £245,000. The mid-range amount of ground rent was £50 billed monthly. The lease elapsed in 2094. Having 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.