The re-sale value of a leasehold property in Birchington depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed prior to the eighty year cut off point. Current legislation enables Birchington qualifying lessees to an additional term of 90 years on top of the unexpired 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 purchase of the lease extension.
Leasehold properties in Birchington with over 100 years outstanding 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Birchington leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Harry owned a 2 bedroom apartment in Birchington being sold with a lease of fraction over fifty eight years outstanding. Harry on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Harry to invoke his statutory right. Harry procured expert legal guidance and secured satisfactory resolution informally and sell the property.
Last Summer we were contacted by Dr I Dupont , who took over the lease of a one bedroom apartment in Birchington in July 2001. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Birchington with 100 year plus lease were worth £216,000. The average ground rent payable was £60 invoiced every twelve months. The lease terminated on 18 October 2083. Having 58 years remaining we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including legals.
Mr Liam Lewis bought a studio flat in Birchington in April 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Birchington with an extended lease were worth £200,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed on 23 September 2103. Considering the 78 years left we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.