The re-sale value of a leasehold property in Crofton depends on how long the lease has remaining. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed in advance of the 80 year cut off point. Leasehold Reform legislation entitles Crofton qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. 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 conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Yorkshire Building Society |
Lease extensions in Crofton can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 in-depth market knowledge procuring Crofton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Oscar, started to get near to the 80-year mark with the lease on his garden flat in Crofton. Having bought his property two decades ago, the lease term was of no concern. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Oscar arranged for a lease extension just in the nick of time last April. Oscar and the freeholder in the end agreed on the final figure of £5,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £925.
Last month we were called by Ms Isobel Laurent , who purchased a purpose-built flat in Crofton in April 1997. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Crofton with an extended lease were worth £270,000. The average ground rent payable was £55 billed annually. The lease lapsed in 2101. Considering the 75 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.
Last Spring we were e-mailed by Dr T Rivera , who purchased a basement apartment in Crofton in February 1999. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Similar premises in Crofton with a long lease were valued about £168,800. The average ground rent payable was £60 billed per annum. The lease concluded in 2081. Considering the 55 years unexpired we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.