The market value of a leasehold property in Brecon is impacted by 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 recommended to arrange for a lease extension ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be addressed in advance of the eighty year cut off point. Statute entitles Brecon qualifying lessees to an additional term of ninety years over and above the existing term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Santander | |
| TSB |
Using our service gives you increased control over the value of your Brecon leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Aiden owned a conversion flat in Brecon on the market with a lease of just over 59 years left. Aiden on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aiden to invoke his statutory right. Aiden obtained expert advice and secured satisfactory resolution informally and readily saleable.
In 2014 we were phoned by Dr L Roux who, having moved into a first floor apartment in Brecon in June 2007. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparative homes in Brecon with 100 year plus lease were valued around £235,200. The average ground rent payable was £45 billed monthly. The lease termination date was in 2092. Taking into account 66 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.
Last year we were phoned by Mr Aaron Stewart , who was assigned a lease of a one bedroom apartment in Brecon in April 2010. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative properties in Brecon with a long lease were in the region of £275,000. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2103. Given that there were 77 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.