The market value of Halesworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is below than 80 years
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
The conveyancers that we work with procure Halesworth 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 conveyancer we work with provide it.
Theo owned a 2 bedroom flat in Halesworth being marketed with a lease of just over 59 years outstanding. Theo on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Autumn we were e-mailed by Mr M Simon , who owned a recently refurbished apartment in Halesworth in July 1997. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Halesworth with an extended lease were valued about £191,400. The mid-range ground rent payable was £55 invoiced monthly. The lease finished on 27 January 2080. Given that there were 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of legals.
In 2013 we were called by Dr B Scott who, having bought a garden flat in Halesworth in March 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Comparable premises in Halesworth with an extended lease were valued about £295,000. The average amount of ground rent was £45 invoiced quarterly. The lease terminated on 22 February 2100. Having 74 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.