The re-sale value of a leasehold property in England Springs is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be finalised prior to the 80 year cut off point. Leasehold Reform legislation enables England Springs qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease 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 purchase of the lease extension.
Leasehold premises in England Springs with more than one hundred 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The conveyancing solicitors that we work with handle England Springs lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Matthew was the the leasehold owner of a studio flat in England Springs being sold with a lease of a few days over sixty years left. Matthew on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
Last month we were e-mailed by Mr and Mrs. F Gunderson , who was assigned a lease of a one bedroom flat in England Springs in March 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative properties in England Springs with 100 year plus lease were worth £166,400. The mid-range ground rent payable was £60 invoiced annually. The lease lapsed on 3 June 2080. Taking into account 54 years left we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including professional charges.
Last year we were contacted by Mr and Mrs. O Martin , who purchased a newly refurbished flat in England Springs in June 2006. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical properties in England Springs with 100 year plus lease were worth £227,800. The mid-range amount of ground rent was £45 billed yearly. The lease lapsed in 2091. Having 65 years left we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.