The market value of a leasehold property in Ireleth and Askam depends on how long the lease has remaining. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded prior to the eighty year threshold. Leasehold Reform legislation enables Ireleth and Askam qualifying lessees to an additional term of 90 years on top of the remaining term, at a peppercorn rent (zero ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Santander | |
| TSB |
Lease extensions in Ireleth and Askam can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in this area.
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 Ireleth and Askam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Joshua, came perilously near to the eighty-year threshold with the lease on his two bedroom flat in Ireleth and Askam. Having purchased his flat 19 years previously, the length of the lease was of minimal significance. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. Joshua was able to extend his lease just ahead of time last January. Joshua and the freeholder in the end agreed on a premium of £6,000 . If the lease had descended below eighty years, the amount would have become more costly by at least £875.
Last year we were e-mailed by Mr C Johnson , who moved into a one bedroom apartment in Ireleth and Askam in September 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Identical properties in Ireleth and Askam with a long lease were worth £166,400. The average ground rent payable was £60 invoiced annually. The lease ended on 23 July 2080. Considering the 54 years remaining we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of legals.
In 2013 we were called by Dr Blake White who, having acquired a one bedroom flat in Ireleth and Askam in April 1997. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative flats in Ireleth and Askam with a long lease were valued around £227,800. The average ground rent payable was £45 billed yearly. The lease ran out on 13 August 2091. Taking into account 65 years remaining we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.