The market value of a leasehold property in Hay On Wye depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded in advance of the eighty year cut off point. Statute enables Hay On Wye qualifying lessees to an additional term of 90 years on top of the unexpired term, at a notional rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Hay On Wye with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Hay On Wye,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hay On Wye valuers.
Subsequent to lengthy negotiations with the landlord of her basement flat in Hay On Wye, Jennifer initiated the lease extension process as the 80 year deadline was quickly approaching. The transaction was concluded in October 2009. The freeholder’s costs were restricted to approximately 500 GBP.
Last year we were called by Mr and Mrs. M López , who bought a one bedroom flat in Hay On Wye in May 2000. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Similar premises in Hay On Wye with an extended lease were valued about £275,000. The average ground rent payable was £65 collected monthly. The lease ended on 3 May 2094. Having 68 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.
Ms J André was assigned a lease of a one bedroom flat in Hay On Wye in July 1997. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Hay On Wye with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 collected every twelve months. The lease ended in 2083. Given that there were 57 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including legals.