The re-sale value of a leasehold property in Emersons Green depends on how long the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that all matters can be finalised prior to the eighty year threshold. Current legislation enables Emersons Green qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount 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 roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Emersons Green can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Emersons Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac was the the leasehold owner of a 2 bedroom apartment in Emersons Green being sold with a lease of just over 72 years left. Isaac on an informal basis approached his landlord a well known local-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 on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert advice and secured an acceptable resolution informally and readily saleable.
Mr and Mrs. G Gunderson owned a one bedroom flat in Emersons Green in May 1998. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Emersons Green with 100 year plus lease were worth £257,800. The mid-range ground rent payable was £65 billed every twelve months. The lease ran out in 2090. Considering the 65 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including professional charges.
In 2013 we were contacted by Mr Ollie Jackson who, having moved into a basement apartment in Emersons Green in May 2004. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Similar residencies in Emersons Green with a long lease were valued around £191,400. The mid-range ground rent payable was £55 invoiced quarterly. The lease lapsed in 2079. Given that there were 54 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of legals.