The market value of a leasehold property in Garforth depends on how long the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that formalities can be finalised well before the eighty year cut off point. Statute entitles Garforth qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Garforth with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Garforth can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Garforth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Evan was the the leasehold proprietor of a high value flat in Garforth being marketed with a lease of a few days over 61 years outstanding. Evan on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Evan to invoke his statutory right. Evan procured expert advice and secured an acceptable resolution informally and readily saleable.
In 2009 we were phoned by Dr Y Lefebvre who, having purchased a one bedroom flat in Garforth in June 2008. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Similar flats in Garforth with an extended lease were in the region of £198,800. The average ground rent payable was £55 invoiced annually. The lease ran out on 4 February 2080. Having 55 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.
Dr E Sharif took over the lease of a ground floor apartment in Garforth in April 2003. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical homes in Garforth with 100 year plus lease were worth £295,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed in 2100. Given that there were 75 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.