The market value of a leasehold property in Horley depends on how long the lease has remaining. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that a lease extension can be addressed ahead of the eighty year threshold. Statute entitles Horley qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Horley with more than 100 years remaining 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 buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| Virgin | |
| Yorkshire Building Society |
Using our service will provide you enhanced control over the value of your Horley leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Oliver, started to get near to the eighty-year threshold with the lease on his first floor apartment in Horley. Having bought his flat twenty years ago, the lease term was of minimal significance. Luckily, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Oliver extended the lease at the eleventh hour last August. Oliver and the landlord in the end settled on the final figure of £5,500 . If the lease had fallen below 80 years, the price would have gone up by at least £900.
Last Winter we were phoned by Mr and Mrs. G Nelson , who owned a basement apartment in Horley in June 1997. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Horley with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease concluded in 2102. Considering the 76 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
Last Christmas we were e-mailed by Mr and Mrs. F Fournier , who took over the lease of a purpose-built apartment in Horley in July 1995. The question was if we could estimate the price would be to prolong the lease by an additional years. Comparative residencies in Horley with 100 year plus lease were worth £181,200. The average amount of ground rent was £65 invoiced every twelve months. The lease ended in 2082. Given that there were 56 years remaining we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of legals.