The re-sale value of a leasehold property in Edenthorpe is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be addressed ahead of the eighty year threshold. Current legislation entitles Edenthorpe qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Edenthorpe with more than 100 years unexpired on the lease are often regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society |
Using our service will provide you enhanced control over the value of your Edenthorpe leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Alexander was the the leasehold owner of a conversion apartment in Edenthorpe on the market with a lease of fraction over 59 years remaining. Alexander informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Alexander to invoke his statutory right. Alexander procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Mr and Mrs. L Turner purchased a one bedroom apartment in Edenthorpe in February 2003. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical premises in Edenthorpe with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 collected quarterly. The lease terminated in 2105. Having 79 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
Last Christmas we were called by Dr G Bell , who acquired a one bedroom apartment in Edenthorpe in February 1998. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparable homes in Edenthorpe with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £65 billed annually. The lease came to a finish on 12 June 2094. Taking into account 68 years unexpired we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.