The re-sale value of a leasehold property in East Molesey is impacted by how long the lease has left to run. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded prior to the 80 year cut off point. Leasehold Reform legislation entitles East Molesey qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in East Molesey with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your East Molesey leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her studio flat in East Molesey, Nicole commenced the lease extension process just as the lease was coming close to the critical 80-year threshold. The lease extension completed in February 2015. The freeholder’s costs were kept to an absolute minimum.
Last Winter we were contacted by Ms Phoebe Brown , who acquired a basement flat in East Molesey in October 2008. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative residencies in East Molesey with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease ended in 2083. Taking into account 58 years remaining we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.
An example of a Lease Extension case for a East Molesey premises is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case affected 1 flat.