The market value of a leasehold property in Henllan depends on how many years the lease has left to run. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed well before the 80 year mark. Statute enables Henllan qualifying lessees to obtain 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 premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Henllan,the lease extension solicitors 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 Henllan valuers.
Rory was the the leasehold owner of a 2 bedroom flat in Henllan being sold with a lease of a few days over 61 years outstanding. Rory on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Rory to invoke his statutory right. Rory obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2009 we were e-mailed by Mr and Mrs. K David who, having completed a recently refurbished flat in Henllan in March 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparable flats in Henllan with a long lease were worth £166,400. The mid-range amount of ground rent was £60 billed monthly. The lease finished on 18 March 2079. Having 54 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of costs.
Dr Finley Morel purchased a first floor flat in Henllan in September 1997. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparable properties in Henllan with a long lease were valued about £227,800. The mid-range ground rent payable was £45 billed annually. The lease terminated on 20 November 2090. Given that there were 65 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.