The re-sale value of a leasehold property in Emersons Green is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that formalities can be finalised prior to the 80 year threshold. Leasehold Reform legislation entitles Emersons Green qualifying lessees to an additional term of 90 years in addition to the existing term, at a notional rent (zero ground rent). The reason 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.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Emersons Green,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Emersons Green valuers.
Off the back of unsuccessful negotiations with the landlord of her leasehold apartment in Emersons Green, Danielle commenced the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The lease extension completed in November 2011. The landlord’s fees were negotiated to less than 500 GBP.
Last year we were e-mailed by Dr V Ramírez , who purchased a ground floor flat in Emersons Green in August 1996. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Identical premises in Emersons Green with an extended lease were valued around £200,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded on 16 June 2102. Considering the 77 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.
Last Autumn we were called by Mr and Mrs. D Adams , who moved into a recently refurbished apartment in Emersons Green in October 2002. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar residencies in Emersons Green with 100 year plus lease were worth £260,200. The average amount of ground rent was £65 billed annually. The lease elapsed on 1 June 2091. Taking into account 66 years left we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of costs.