The market value of a leasehold property in Bridgwater depends on how long the lease has remaining. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. 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 finalised well before the 80 year cut off point. Current legislation entitles Bridgwater qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Bridgwater with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle Bridgwater 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.
In the wake of 9 months of lengthy discussions with the freeholder of her studio flat in Bridgwater, Maisie commenced the lease extension process as the 80 year deadline was quickly coming. The legal work was finalised in September 2008. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were called by Mr and Mrs. E Mitchell who, having completed a recently refurbished flat in Bridgwater in March 1998. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Identical properties in Bridgwater with a long lease were worth £240,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease expired on 16 September 2088. Given that there were 62 years remaining we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
Ms Sophie Lee was assigned a lease of a first floor flat in Bridgwater in March 1998. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in Bridgwater with an extended lease were in the region of £174,200. The average ground rent payable was £55 invoiced quarterly. The lease terminated in 2077. Given that there were 51 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus professional charges.