The re-sale value of a leasehold property in Gilberdyke is impacted by how long the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised in advance of the 80 year mark. Statute enables Gilberdyke qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society | |
| Virgin |
The conveyancing solicitors that we work with procure Gilberdyke lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
18 months ago Arthur, started to get close to the 80-year threshold with the lease on his leasehold apartment in Gilberdyke. In buying his property 18 years previously, the unexpired term was of no concern. As luck would have it, he noticed he would imminently be paying way over the odds for Extending the lease. Arthur arranged for a lease extension just under the wire in March. Arthur and the freeholder via the managing agents subsequently settled on sum of £5,500 . If he failed to meet the deadline, the amount would have gone up by at least £1,025.
In 2013 we were e-mailed by Dr T Dupont who, having bought a garden apartment in Gilberdyke in February 2009. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical properties in Gilberdyke with 100 year plus lease were valued around £201,200. The average ground rent payable was £55 invoiced monthly. The lease terminated on 24 October 2082. Taking into account 56 years left we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.
Last Winter we were called by Mr Noah Allen , who moved into a first floor apartment in Gilberdyke in February 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Gilberdyke with a long lease were worth £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease terminated on 23 June 2102. Taking into account 76 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.