The re-sale value of a leasehold property in Evesham depends on how many years the lease has left to run. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be addressed prior to the 80 year cut off point. Current legislation enables Evesham qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Evesham leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Kian, came very near to the 80-year mark with the lease on his basement apartment in Evesham. Having bought his flat two decades ago, the unexpired term was of minimal bearing. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Kian was able to extend his lease just ahead of time in April. Kian and the freeholder via the managing agents ultimately settled on a premium of £5,500 . If the lease had slipped to less than eighty years, the figure would have gone up by a minimum £900.
Mr Adam González acquired a studio flat in Evesham in July 1999. We are asked if we could approximate the price could be to prolong the lease by 90 years. Identical homes in Evesham with a long lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced yearly. The lease end date was on 4 August 2087. Having 61 years as a residual term we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of legals.
Last Winter we were phoned by Mr and Mrs. S García , who purchased a first floor flat in Evesham in November 1995. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Evesham with 100 year plus lease were valued about £171,800. The mid-range ground rent payable was £55 billed every twelve months. The lease ran out in 2076. Considering the 50 years left we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus fees.