The market value of a leasehold property in Greasby depends on how long the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised well before the eighty year cut off point. Current legislation entitles Greasby qualifying lessees to acquire a lease extension of ninety 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 sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Yorkshire 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. |
Lease extensions in Greasby can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 Greasby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the freeholder of her two bedroom flat in Greasby, Sophie commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The lease extension was concluded in August 2007. The landlord’s fees were restricted to under 700 pounds.
Mr and Mrs. A Bennett completed a studio apartment in Greasby in July 2001. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable residencies in Greasby with an extended lease were valued about £200,800. The average amount of ground rent was £65 billed per annum. The lease terminated on 8 August 2086. Given that there were 60 years unexpired we approximated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus professional charges.
Mrs Charlotte Garcia was assigned a lease of a basement flat in Greasby in July 2008. The question was if we could estimate the premium could be to prolong the lease by an additional years. Identical properties in Greasby with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2097. Taking into account 71 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.