The re-sale value of a leasehold property in Cranfield is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised ahead of the eighty year mark. Current legislation enables Cranfield qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of 90 years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Santander | |
| Skipton Building Society |
Using our service gives you better control over the value of your Cranfield leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the freeholder of her purpose-built flat in Cranfield, Francesca initiated the lease extension process as the 80 year mark was swiftly coming. The transaction was concluded in January 2012. The freeholder’s costs were negotiated to slightly above 500 pounds.
In 2013 we were called by Dr Abbie Morgan who, having acquired a garden flat in Cranfield in November 2007. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar residencies in Cranfield with an extended lease were valued around £254,200. The mid-range ground rent payable was £60 collected annually. The lease terminated on 12 November 2077. Having 51 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 plus expenses.
Ms S Baker completed a studio apartment in Cranfield in July 2006. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Similar premises in Cranfield with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected quarterly. The lease concluded in 2088. Considering the 62 years outstanding we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus legals.