The market value of a leasehold property in Bushey is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded well before the 80 year cut off point. Current legislation entitles Bushey qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. 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 property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Bushey,the lease extension solicitors 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 Bushey valuers.
Trailing protracted correspondence with the freeholder of her leasehold flat in Bushey, Morgan commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction was finalised in January 2011. The landlord’s fees were negotiated to below 700 GBP.
In 2009 we were called by Mr M González who, having bought a basement apartment in Bushey in June 2009. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable properties in Bushey with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed in 2102. Considering the 76 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension case for a Bushey premises is 197 Byron Road in March 2013. In relation to the value of the extended lease the tribunal concluded that the appropriate premium should be £19237 This case was in relation to 1 flat. The remaining number of years on the lease was 70.92 years.