The market value of a leasehold property in Deddington is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that formalities can be concluded well before the 80 year threshold. Current legislation enables Deddington qualifying lessees to an additional term of 90 years in addition to the existing term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Deddington with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Deddington leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Archie owned a 2 bedroom apartment in Deddington on the market with a lease of a few days over 61 years unexpired. Archie informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Archie to invoke his statutory right. Archie obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.
In 2012 we were phoned by Mr M Baker who, having completed a newly refurbished apartment in Deddington in February 2001. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical premises in Deddington with 100 year plus lease were in the region of £237,600. The average ground rent payable was £45 collected quarterly. The lease came to a finish on 1 August 2092. Having 67 years unexpired we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of legals.
Last year we were e-mailed by Mrs Francesca Bonnet , who bought a studio flat in Deddington in October 2005. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar residencies in Deddington with a long lease were valued around £280,000. The average ground rent payable was £55 collected monthly. The lease lapsed on 22 July 2103. Given that there were 78 years unexpired we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.