The re-sale value of a leasehold property in Higham Wood is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed prior to the 80 year cut off point. Current legislation enables Higham Wood qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining 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.
Leasehold residencies in Higham Wood with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Royal Bank of Scotland |
Lease extensions in Higham Wood can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 Higham Wood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jayden owned a conversion apartment in Higham Wood on the market with a lease of fraction over 59 years outstanding. Jayden on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Last year we were phoned by Mr and Mrs. H Lefèvre , who purchased a basement apartment in Higham Wood in November 2009. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical properties in Higham Wood with a long lease were worth £208,200. The mid-range ground rent payable was £65 billed yearly. The lease ended on 17 April 2087. Having 61 years remaining we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of legals.
In 2012 we were approached by Mr Archie Campbell who, having took over the lease of a ground floor flat in Higham Wood in June 2009. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical properties in Higham Wood with a long lease were valued around £260,000. The average ground rent payable was £50 collected quarterly. The lease lapsed on 5 May 2098. Taking into account 72 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.