The market value of a leasehold property in Droitwich Spa is impacted by how long the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the lease extension process when the lease still has 82 years remaining so that formalities can be finalised ahead of the eighty year threshold. Leasehold Reform legislation enables Droitwich Spa qualifying lessees to an additional term of 90 years on top of the unexpired term, at a notional rent (no ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Droitwich Spa with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a landlord in Droitwich Spa,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Droitwich Spa valuers.
Subsequent to unsuccessful correspondence with the freeholder of her one bedroom apartment in Droitwich Spa, Freya initiated the lease extension process just as her lease was coming close to the critical eighty-year mark. The transaction completed in November 2013. The landlord’s charges were kept to an absolute minimum.
Last Winter we were e-mailed by Mr and Mrs. K Lambert , who was assigned a lease of a first floor apartment in Droitwich Spa in April 2012. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable flats in Droitwich Spa with a long lease were in the region of £183,600. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish in 2083. Considering the 57 years unexpired we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus fees.
Mrs D Garcia completed a basement apartment in Droitwich Spa in October 1997. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Identical premises in Droitwich Spa with a long lease were worth £245,000. The mid-range amount of ground rent was £50 collected annually. The lease finished in 2094. Given that there were 68 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.