The market value of a leasehold property in Bodmin depends on how many years the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be addressed well before the 80 year cut off point. Leasehold Reform legislation enables Bodmin qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason 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 Bodmin with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Leeds Building Society | |
| TSB | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Bodmin,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bodmin valuers.
Lucas was the the leasehold proprietor of a 2 bedroom flat in Bodmin on the market with a lease of just over 59 years outstanding. Lucas informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Last Spring we were phoned by Mr and Mrs. E Roberts , who purchased a first floor flat in Bodmin in November 2010. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparative homes in Bodmin with an extended lease were in the region of £243,000. The average amount of ground rent was £65 billed per annum. The lease came to a finish in 2089. Having 63 years outstanding we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of expenses.
Dr Liam Watson purchased a studio flat in Bodmin in June 1997. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparable homes in Bodmin with a long lease were valued about £181,600. The average amount of ground rent was £55 collected yearly. The lease finished in 2078. Considering the 52 years left we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.