The re-sale value of a leasehold property in Didcot is impacted by how long the lease has remaining. If it is near to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed ahead of the 80 year cut off point. Leasehold Reform legislation entitles Didcot qualifying lessees to an additional term of ninety years on top of the unexpired term, at a nominal 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.
It is generally considered that a residential leasehold with more than 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 worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society |
Engaging our service gives you increased control over the value of your Didcot leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kai was the the leasehold proprietor of a studio flat in Didcot being marketed with a lease of a few days over 61 years remaining. Kai on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last year we were phoned by Mrs Amelia Green , who owned a first floor flat in Didcot in May 2006. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical residencies in Didcot with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out on 3 March 2102. Having 76 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Dr Nathaniel Nelson completed a studio flat in Didcot in November 2003. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Didcot with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected annually. The lease finished on 19 July 2082. Having 56 years left we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of expenses.