The market value of a leasehold property in Goodrich is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that formalities can be concluded well before the 80 year threshold. Leasehold Reform legislation enables Goodrich qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose 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 conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Goodrich can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
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 dealing with Goodrich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Finn, started to get close to the eighty-year threshold with the lease on his garden apartment in Goodrich. Having bought his flat twenty years ago, the length of the lease was of little concern. Thankfully, he recognised he would soon be paying an escalated premium for a lease extension. Finn arranged for a lease extension just ahead of time last March. Finn and the freeholder in the end settled on sum of £5,000 . If the lease had dropped to less than 80 years, the price would have gone up by a minimum £1,000.
Last March we were approach by Mr and Mrs. F Green , who bought a garden flat in Goodrich in July 2008. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical homes in Goodrich with a long lease were valued about £201,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish on 10 January 2082. Having 56 years left we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
Mr and Mrs. V Richardson bought a purpose-built flat in Goodrich in February 2002. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Goodrich with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 billed quarterly. The lease ran out on 3 May 2102. Considering the 76 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.