The re-sale value of a leasehold property in Countesthorpe is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded well before the 80 year threshold. Current legislation enables Countesthorpe qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The purpose 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 residencies in Countesthorpe with more than 100 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
The lawyers that we work with procure Countesthorpe 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.
Half a year ago Gabriel, started to get close to the eighty-year threshold with the lease on his studio apartment in Countesthorpe. Having bought his property 19 years ago, the lease term was of little significance. Fortunately, he realised he needed to take steps soon on a lease extension. Gabriel was able to extend his lease just in the nick of time last April. Gabriel and the landlord in the end settled on a premium of £5,000 . If he had missed the deadline, the price would have increased by at least £1,125.
Ms B Jackson purchased a purpose-built flat in Countesthorpe in July 2005. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative properties in Countesthorpe with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 collected annually. The lease concluded on 1 May 2103. Having 77 years unexpired we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
In 2009 we were e-mailed by Mr and Mrs. T López who, having owned a one bedroom flat in Countesthorpe in January 2008. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Countesthorpe with a long lease were in the region of £260,200. The average ground rent payable was £65 billed per annum. The lease ran out on 27 October 2092. Given that there were 66 years left we calculated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including fees.