The market value of a leasehold property in Chichester depends on 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 prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded in advance of the eighty year threshold. Current legislation entitles Chichester qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Chichester with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank |
Regardless of whether you are a tenant or a landlord in Chichester,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 Chichester valuers.
Tommy owned a conversion apartment in Chichester on the market with a lease of just over sixty years unexpired. Tommy on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert advice and secured satisfactory deal informally and sell the property.
In 2012 we were e-mailed by Dr G Roux who, having bought a garden apartment in Chichester in January 2011. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparable properties in Chichester with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 invoiced monthly. The lease ran out on 28 November 2090. Taking into account 64 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of costs.
Last month we were phoned by Mr F García , who bought a one bedroom apartment in Chichester in June 2010. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Chichester with 100 year plus lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease end date was in 2079. Considering the 53 years unexpired we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including fees.