The re-sale value of a leasehold property in Fillongley depends on how long the lease has left to run. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that a lease extension can be finalised prior to the 80 year threshold. Leasehold Reform legislation enables Fillongley qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose 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 over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Fillongley,the lease extension solicitors 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 Fillongley valuers.
Ethan was the the leasehold proprietor of a 2 bedroom flat in Fillongley on the market with a lease of a little over fifty eight years left. Ethan on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
In 2009 we were phoned by Dr W Ward who, having acquired a studio flat in Fillongley in October 2012. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable premises in Fillongley with a long lease were in the region of £171,800. The average ground rent payable was £55 invoiced every twelve months. The lease finished in 2076. Given that there were 50 years unexpired we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.
Last Winter we were contacted by Mr and Mrs. N Cox , who acquired a one bedroom flat in Fillongley in October 1995. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Fillongley with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease elapsed on 2 October 2096. Taking into account 70 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.