The market value of a leasehold property in Eaglescliffe is impacted by how long the lease has remaining. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that a lease extension can be addressed in advance of the 80 year threshold. Leasehold Reform legislation enables Eaglescliffe qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| Santander | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Eaglescliffe,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 Eaglescliffe valuers.
Off the back of lengthy discussions with the landlord of her first floor flat in Eaglescliffe, Tia started the lease extension process as the 80 year mark was quickly advancing. The lease extension was finalised in January 2013. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were approached by Ms Louise Moore who, having took over the lease of a garden flat in Eaglescliffe in July 1995. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Eaglescliffe with a long lease were valued around £191,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ended on 17 September 2084. Having 58 years left we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of legals.
Last Autumn we were phoned by Mr and Mrs. I Brown , who owned a one bedroom flat in Eaglescliffe in August 2004. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Similar homes in Eaglescliffe with a long lease were in the region of £250,000. The average amount of ground rent was £50 billed every twelve months. The lease came to a finish in 2095. Taking into account 69 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.