The market value of a leasehold property in Bodmin depends on how many years the lease has left to run. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed ahead of the eighty year cut off point. Leasehold Reform legislation enables Bodmin qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over 100 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 equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Bodmin can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bodmin lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the freeholder of her two bedroom apartment in Bodmin, Hannah started the lease extension process just as the lease was coming close to the critical 80-year deadline. The legal work was finalised in September 2010. The freeholder’s charges were negotiated to about four hundred pounds.
Last Winter we were phoned by Ms V Rose , who owned a recently refurbished flat in Bodmin in March 2003. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical homes in Bodmin with a long lease were worth £295,000. The mid-range amount of ground rent was £50 billed per annum. The lease finished in 2101. Taking into account 75 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
In 2013 we were contacted by Mr and Mrs. N Carter who, having acquired a studio flat in Bodmin in October 1995. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparative flats in Bodmin with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 billed yearly. The lease lapsed on 7 July 2090. Taking into account 64 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.