The market value of a leasehold property in Childwall depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that a lease extension can be concluded prior to the 80 year threshold. Current legislation entitles Childwall qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Virgin | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Childwall 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 conveyancer we work with provide it.
Zachary was the the leasehold proprietor of a high value apartment in Childwall being sold with a lease of a little over 72 years left. Zachary informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Zachary to invoke his statutory right. Zachary obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr C Patel owned a recently refurbished apartment in Childwall in January 1996. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Childwall with 100 year plus lease were in the region of £168,800. The average amount of ground rent was £60 billed monthly. The lease concluded on 13 June 2081. Having 55 years as a residual term we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including legals.
Mr Nathan Mitchell owned a studio flat in Childwall in June 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Childwall with 100 year plus lease were valued about £235,200. The mid-range amount of ground rent was £45 invoiced monthly. The lease came to a finish on 16 November 2092. Considering the 66 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.