The market value of a leasehold property in Claverley depends on how many years the lease has left to run. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be finalised prior to the 80 year cut off point. Leasehold Reform legislation enables Claverley qualifying lessees to an additional term of 90 years on top of the remaining term, at a nominal rent (no ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Claverley with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland |
Engaging our service gives you enhanced control over the value of your Claverley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the freeholder of her first floor flat in Claverley, Sian started the lease extension process as the 80 year threshold was fast approaching. The lease extension was finalised in September 2014. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were approached by Dr I Moore who, having owned a recently refurbished flat in Claverley in May 1995. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical premises in Claverley with a long lease were valued around £181,600. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ended on 19 February 2078. Given that there were 52 years remaining we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of expenses.
Dr Caleb Brooks owned a one bedroom flat in Claverley in February 2007. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Comparative properties in Claverley with an extended lease were valued about £290,000. The average amount of ground rent was £45 billed every twelve months. The lease expired on 12 January 2098. Having 72 years unexpired we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.