The re-sale value of a leasehold property in Euxton is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be finalised in advance of the eighty year mark. Statute enables Euxton qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Euxton with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
Irrespective of whether you are a tenant or a freeholder in Euxton,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 in-depth market knowledge and the close ties they enjoy with Euxton valuers.
Harrison owned a studio flat in Euxton being marketed with a lease of just over 72 years remaining. Harrison informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Mrs S Walker was assigned a lease of a basement flat in Euxton in April 1997. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable flats in Euxton with a long lease were valued about £213,600. The average ground rent payable was £60 collected annually. The lease elapsed on 21 April 2083. Having 57 years left we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus professional charges.
Dr Ryan Gray was assigned a lease of a garden flat in Euxton in November 1997. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative residencies in Euxton with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 billed monthly. The lease concluded in 2103. Given that there were 77 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.