The market value of a leasehold property in Exton is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension 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 eighty year cut off point. Current legislation enables Exton qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Exton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Exton valuers.
Mason was the the leasehold proprietor of a high value flat in Exton being marketed with a lease of a little over 59 years unexpired. Mason on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last Summer we were e-mailed by Mr and Mrs. C Mercier , who took over the lease of a newly refurbished apartment in Exton in April 1998. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Identical residencies in Exton with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 collected annually. The lease ended on 23 August 2083. Having 57 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including costs.
Dr Alexander Murphy moved into a one bedroom flat in Exton in September 1995. We are asked if we could approximate the price would be to extend the lease by 90 years. Identical homes in Exton with an extended lease were valued around £200,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expiry date was on 8 May 2103. Considering the 77 years outstanding we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.