The market value of a leasehold property in Hednesford depends on how many years the lease has remaining. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed prior to the eighty year threshold. Current legislation entitles Hednesford qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The intention 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 generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Hednesford can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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 Hednesford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the landlord of her basement flat in Hednesford, Elizabeth started the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction was concluded in July 2013. The freeholder’s charges were negotiated to below 500 pounds.
In 2010 we were e-mailed by Mrs Olivia Torres who, having was assigned a lease of a recently refurbished flat in Hednesford in February 2007. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable premises in Hednesford with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 collected yearly. The lease finished on 18 June 2096. Given that there were 71 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2013 we were contacted by Mr and Mrs. L Fournier who, having owned a first floor flat in Hednesford in August 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Hednesford with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish in 2076. Having 51 years remaining we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 plus legals.