The market value of a leasehold property in East Barming depends on how long the lease has remaining. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised ahead of the eighty year mark. Statute enables East Barming qualifying lessees to an additional term of 90 years over and above the unexpired term, at a peppercorn rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in East Barming with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| 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 freeholder in East Barming,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with East Barming valuers.
Alexander owned a conversion flat in East Barming on the market with a lease of fraction over sixty years left. Alexander on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert advice and secured an acceptable deal informally and sell the property.
Last February we were e-mailed by Mrs F Leroy , who took over the lease of a purpose-built flat in East Barming in January 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in East Barming with a long lease were in the region of £176,200. The average amount of ground rent was £65 collected per annum. The lease finished in 2081. Considering the 56 years remaining we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of fees.
Mr Jacob Allen purchased a one bedroom apartment in East Barming in October 2000. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Identical properties in East Barming with 100 year plus lease were valued around £242,600. The mid-range ground rent payable was £45 billed annually. The lease expiry date was on 21 June 2092. Having 67 years unexpired we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus expenses.