The re-sale value of a leasehold property in Brading is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed well before the eighty year cut off point. Leasehold Reform legislation enables Brading qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a notional rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Skipton Building Society | |
| TSB | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Brading,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brading valuers.
Two years ago Alexander, started to get close to the 80-year mark with the lease on his purpose- built flat in Brading. Having purchased his property two decades ago, the length of the lease was of minimal importance. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. Alexander arranged for a lease extension just under the wire in January. Alexander and the landlord ultimately agreed on an amount of £6,000 . If the lease had gone to less than 80 years, the figure would have gone up by a minimum £1,075.
Last Summer we were phoned by Dr Victoria Jackson , who purchased a studio apartment in Brading in September 2002. 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. Identical residencies in Brading with an extended lease were worth £275,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease terminated in 2094. Given that there were 68 years remaining we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
In 2014 we were called by Dr Jason Cook who, having purchased a recently refurbished flat in Brading in June 2006. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative properties in Brading with an extended lease were valued around £213,600. The mid-range ground rent payable was £60 billed every twelve months. The lease finished in 2083. Considering the 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including professional charges.