The value of Dereham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than 80 years
Leasehold residencies in Dereham with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Santander | |
| Skipton Building Society |
Regardless of whether you are a tenant or a landlord in Dereham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dereham valuers.
John was the the leasehold proprietor of a conversion apartment in Dereham being sold with a lease of just over 59 years remaining. John on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were John to exercise his statutory right. John obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Dr W Cooper purchased a garden flat in Dereham in November 1999. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Identical flats in Dereham with 100 year plus lease were in the region of £210,600. The average ground rent payable was £45 collected annually. The lease ran out on 2 April 2088. Having 62 years unexpired we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of costs.
Last year we were phoned by Mr Y White , who completed a ground floor flat in Dereham in February 2000. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar premises in Dereham with 100 year plus lease were valued around £265,000. The mid-range amount of ground rent was £50 collected quarterly. The lease lapsed in 2099. Given that there were 73 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.