The market value of a leasehold property in Bracebridge Heath is impacted by how long the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised ahead of the 80 year cut off point. Current legislation entitles Bracebridge Heath qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Bracebridge Heath with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| The Mortgage Works |
The conveyancers that we work with undertake Bracebridge Heath lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Michael, came seriously near to the eighty-year mark with the lease on his ground floor flat in Bracebridge Heath. In buying his flat twenty years ago, the unexpired term was of minimal relevance. Thankfully, he recognised he needed to take action soon on Extending the lease. Michael was able to extend his lease just ahead of time in January. Michael and the freeholder via the managing agents in the end agreed on sum of £6,000 . If the lease had slipped to less than eighty years, the amount would have gone up by a minimum £1,075.
In 2012 we were e-mailed by Mrs Courtney Lambert who, having took over the lease of a recently refurbished apartment in Bracebridge Heath in February 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Bracebridge Heath with a long lease were valued about £198,400. The mid-range ground rent payable was £65 billed monthly. The lease came to a finish in 2085. Taking into account 59 years left we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of legals.
Mr Ben Nguyen owned a garden flat in Bracebridge Heath in June 2002. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical homes in Bracebridge Heath with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 collected quarterly. The lease expired on 19 February 2096. Considering the 70 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.