The market value of a leasehold property in Dawley and Lawley depends on how many years the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that a lease extension can be concluded ahead of the eighty year mark. Leasehold Reform legislation enables Dawley and Lawley 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 intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase 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 ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Dawley and Lawley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dawley and Lawley valuers.
Ben owned a conversion apartment in Dawley and Lawley being marketed with a lease of just over fifty eight years outstanding. Ben informally approached his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ben to invoke his statutory right. Ben obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Dr John Clark purchased a purpose-built apartment in Dawley and Lawley in April 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative residencies in Dawley and Lawley with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease termination date was in 2100. Taking into account 75 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Last Winter we were contacted by Mr and Mrs. V Hill , who bought a garden apartment in Dawley and Lawley in September 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Dawley and Lawley with a long lease were valued around £173,800. The mid-range amount of ground rent was £60 billed quarterly. The lease lapsed on 11 March 2080. Considering the 55 years left we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.