The re-sale value of a leasehold property in Caister On Sea depends on how many years the lease has remaining. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be finalised ahead of the 80 year cut off point. Current legislation enables Caister On Sea qualifying lessees to an additional term of 90 years on top of the existing term, at a peppercorn rent (no ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Caister On Sea with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| The Mortgage Works |
Regardless of whether you are a tenant or a freeholder in Caister On Sea,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Caister On Sea valuers.
Evan owned a 2 bedroom flat in Caister On Sea on the market with a lease of a little over sixty years remaining. Evan informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Evan to invoke his statutory right. Evan obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2010 we were contacted by Dr R James who, having completed a studio apartment in Caister On Sea in July 2000. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative premises in Caister On Sea with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced annually. The lease came to a finish on 1 May 2106. Considering the 80 years left we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
In 2009 we were contacted by Mr and Mrs. U Harris who, having was assigned a lease of a basement flat in Caister On Sea in February 2002. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Caister On Sea with a long lease were in the region of £200,800. The average amount of ground rent was £65 invoiced quarterly. The lease elapsed in 2086. Considering the 60 years as a residual term we estimated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.