The market value of a leasehold property in Elland is impacted by how long the lease has left to run. If it is close to or less than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised ahead of the eighty year mark. Current legislation entitles Elland qualifying lessees to an additional term of 90 years on top of the unexpired term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Engaging our service gives you enhanced control over the value of your Elland leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her purpose-built flat in Elland, Isabel commenced the lease extension process as the eighty year threshold was rapidly coming. The lease extension was finalised in March 2011. The landlord’s fees were kept to an absolute minimum.
Dr O Robinson completed a purpose-built flat in Elland in July 2008. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Elland with an extended lease were worth £205,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed in 2105. Taking into account 79 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Last Spring we were called by Dr Kayleigh Lambert , who moved into a basement flat in Elland in October 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative premises in Elland with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £65 billed annually. The lease terminated on 12 March 2094. Taking into account 68 years unexpired we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.