The re-sale value of a leasehold property in Coniston is impacted by how long the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be concluded well before the 80 year cut off point. Leasehold Reform legislation enables Coniston qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| Royal Bank of Scotland |
Lease extensions in Coniston can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Coniston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Ali, started to get near to the 80-year mark with the lease on his first floor flat in Coniston. In buying his home 18 years previously, the length of the lease was of minimal concern. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Ali arranged for a lease extension just ahead of time in June. Ali and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If the lease had fallen below 80 years, the premium would have become more costly by a minimum £1,075.
In 2012 we were contacted by Mr J Nguyen who, having was assigned a lease of a one bedroom flat in Coniston in June 1995. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative homes in Coniston with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 invoiced per annum. The lease concluded on 8 March 2103. Considering the 77 years left we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
In 2012 we were phoned by Ms B André who, having owned a first floor apartment in Coniston in July 2005. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Coniston with a long lease were valued about £183,600. The mid-range amount of ground rent was £65 billed yearly. The lease ran out in 2083. Given that there were 57 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of costs.