The market value of a leasehold property in Frant depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed ahead of the eighty year threshold. Leasehold Reform legislation enables Frant 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 purpose 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 Frant with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Santander | |
| Virgin |
Retaining our service gives you increased control over the value of your Frant leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Matthew, started to get close to the eighty-year threshold with the lease on his garden apartment in Frant. Having bought his flat two decades ago, the length of the lease was of minimal bearing. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Matthew was able to extend his lease at the eleventh hour last September. Matthew and the freeholder via the management company ultimately settled on an amount of £5,000 . If the lease had fallen below eighty years, the sum would have gone up by at least £950.
In 2009 we were e-mailed by Dr Ali Ali who, having acquired a one bedroom flat in Frant in November 2005. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Similar homes in Frant with a long lease were valued around £254,200. The mid-range amount of ground rent was £60 billed annually. The lease concluded in 2077. Taking into account 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of fees.
Last April we were called by Dr V Clark , who was assigned a lease of a purpose-built apartment in Frant in October 2012. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Frant with a long lease were valued around £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease finished in 2088. Taking into account 62 years unexpired we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 not including expenses.