The market value of a leasehold property in Buntingford is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded well before the 80 year threshold. Statute enables Buntingford qualifying lessees to an additional term of 90 years over and above the remaining term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the amount 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 further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| National Westminster Bank |
The conveyancers that we work with undertake Buntingford 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 lawyer we work with provide it.
After lengthy negotiations with the landlord of her two bedroom flat in Buntingford, Isabelle started the lease extension process just as her lease was nearing the critical 80-year threshold. The legal work was concluded in November 2006. The freeholder’s charges were restricted to approximately 650 GBP.
In 2014 we were approached by Mrs G Turner who, having purchased a purpose-built apartment in Buntingford in November 2004. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable flats in Buntingford with 100 year plus lease were valued about £183,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease elapsed on 13 November 2083. Having 57 years left we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of expenses.
In 2014 we were called by Dr Gabriel Rogers who, having moved into a garden apartment in Buntingford in September 2003. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative residencies in Buntingford with an extended lease were in the region of £245,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded on 5 March 2094. Taking into account 68 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.