The re-sale value of a leasehold property in Euston is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that formalities can be finalised well before the 80 year cut off point. Leasehold Reform legislation enables Euston qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Euston with in excess of 100 years unexpired on the lease are often referred to as ‘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 buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Leeds Building Society | |
| Santander | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a landlord in Euston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Euston valuers.
Subsequent to lengthy correspondence with the freeholder of her two bedroom apartment in Euston, Emily initiated the lease extension process as the eighty year deadline was fast approaching. The legal work was concluded in May 2014. The landlord’s costs were restricted to less than four hundred pounds.
Ms U Rivera moved into a first floor flat in Euston in November 2007. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative flats in Euston with a long lease were valued around £166,400. The average amount of ground rent was £60 billed yearly. The lease came to a finish in 2080. Given that there were 54 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of legals.
In 2012 we were phoned by Ms C Bonnet who, having bought a purpose-built flat in Euston in September 2005. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar homes in Euston with an extended lease were in the region of £227,800. The mid-range amount of ground rent was £45 collected per annum. The lease expired on 3 March 2091. Considering the 65 years as a residual term we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.