The market value of a leasehold property in Chandlers Ford is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded well before the eighty year mark. Statute entitles Chandlers Ford qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Chandlers Ford with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Chandlers Ford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chandlers Ford valuers.
Following protracted correspondence with the freeholder of her leasehold apartment in Chandlers Ford, Sian started the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension was finalised in June 2008. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were contacted by Mrs Shannon King who, having was assigned a lease of a one bedroom apartment in Chandlers Ford in August 1999. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Similar homes in Chandlers Ford with an extended lease were valued around £205,000. The mid-range ground rent payable was £50 collected per annum. The lease ended on 3 July 2104. Considering the 79 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
Last year we were called by Mr and Mrs. M Watson , who acquired a ground floor flat in Chandlers Ford in April 2011. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Comparative flats in Chandlers Ford with an extended lease were valued around £275,000. The mid-range ground rent payable was £65 collected annually. The lease terminated on 3 October 2093. Given that there were 68 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.