The re-sale value of a leasehold property in Henllan depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised ahead of the eighty year mark. Current legislation enables Henllan qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Henllan,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Henllan valuers.
In the wake of eight months of unsuccessful discussions with the freeholder of her basement apartment in Henllan, Hannah initiated the lease extension process as the 80 year threshold was rapidly advancing. The transaction was finalised in November 2015. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr and Mrs. F Rodríguez , who purchased a newly refurbished flat in Henllan in February 2009. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative premises in Henllan with a long lease were valued around £215,600. The mid-range ground rent payable was £45 billed every twelve months. The lease lapsed in 2088. Having 62 years as a residual term we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including professional charges.
In 2013 we were approached by Dr Matthew Petit who, having took over the lease of a garden apartment in Henllan in March 2012. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar residencies in Henllan with a long lease were worth £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease finished in 2099. Given that there were 73 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.