The re-sale value of a leasehold property in Bishops Waltham is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years to run so that formalities can be finalised ahead of the 80 year cut off point. Current legislation enables Bishops Waltham qualifying lessees to an additional term of 90 years over and above the unexpired term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Bishops Waltham with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Bishops Waltham 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the landlord of her two bedroom apartment in Bishops Waltham, Bethan initiated the lease extension process as the 80 year threshold was swiftly coming. The lease extension was finalised in March 2014. The landlord’s fees were kept to an absolute minimum.
Mr S Johnson acquired a basement flat in Bishops Waltham in January 2005. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Similar residencies in Bishops Waltham with a long lease were valued around £200,000. The average amount of ground rent was £50 invoiced yearly. The lease expired in 2102. Given that there were 77 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Last Christmas we were approach by Dr P Hall , who bought a garden flat in Bishops Waltham in March 2004. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable premises in Bishops Waltham with an extended lease were valued about £265,200. The average ground rent payable was £65 billed quarterly. The lease finished on 26 March 2091. Given that there were 66 years outstanding we estimated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of legals.