The re-sale value of a leasehold property in Buckfastleigh depends on how long the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that all matters can be finalised prior to the eighty year cut off point. Leasehold Reform legislation entitles Buckfastleigh qualifying lessees to an additional term of 90 years over and above the unexpired term, at a peppercorn rent (no ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Buckfastleigh with over one hundred years remaining on the lease are sometimes referred to as ‘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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Leeds Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Buckfastleigh,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 Buckfastleigh valuers.
Two years ago Edward, came perilously close to the eighty-year mark with the lease on his garden apartment in Buckfastleigh. In buying his flat twenty years ago, the lease term was of minimal interest. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Edward arranged for a lease extension just under the wire in May. Edward and the landlord eventually settled on sum of £6,000 . If he not met the deadline, the figure would have gone up by at least £1,025.
Dr Charlie Sharif purchased a garden apartment in Buckfastleigh in July 1996. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable flats in Buckfastleigh with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed on 2 March 2105. Having 79 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Last Summer we were called by Dr Callum Sánchez , who bought a one bedroom apartment in Buckfastleigh in July 1998. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable premises in Buckfastleigh with an extended lease were valued around £275,000. The average amount of ground rent was £65 collected yearly. The lease termination date was on 7 May 2094. Considering the 68 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.