The re-sale value of a leasehold property in Furzedown depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years to run so that a lease extension can be addressed ahead of the 80 year mark. Statute entitles Furzedown qualifying lessees to an additional term of ninety years on top of the remaining term, at a peppercorn rent (no ground rent). The purpose of the valuation is to determine 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 unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Furzedown leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan was the the leasehold proprietor of a 2 bedroom flat in Furzedown being sold with a lease of a little over 61 years outstanding. Jonathan on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2011 we were e-mailed by Mr Leon Brooks who, having acquired a one bedroom apartment in Furzedown in June 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Furzedown with 100 year plus lease were worth £210,600. The average ground rent payable was £45 billed monthly. The lease ran out on 18 April 2088. Given that there were 62 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.
Mr and Mrs. A King moved into a purpose-built flat in Furzedown in September 2004. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparable premises in Furzedown with 100 year plus lease were worth £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease terminated on 13 September 2099. Having 73 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.