The market value of a leasehold property in Grays is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised in advance of the 80 year mark. Leasehold Reform legislation enables Grays qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Grays with more than 100 years remaining 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Using our service gives you better control over the value of your Grays 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tommy was the the leasehold owner of a high value apartment in Grays on the market with a lease of just over sixty years outstanding. Tommy on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert legal guidance and secured satisfactory resolution informally and sell the property.
In 2009 we were contacted by Mr and Mrs. R Martin who, having moved into a one bedroom flat in Grays in April 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable premises in Grays with 100 year plus lease were valued around £235,200. The mid-range amount of ground rent was £45 collected every twelve months. The lease finished on 14 August 2092. Considering the 66 years unexpired we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Grays premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case related to 13 flats. The unexpired term was 76 years.