The market value of a leasehold property in Kings Lynn depends on how many years the lease has left to run. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised well before the 80 year mark. Leasehold Reform legislation entitles Kings Lynn qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention 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 residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Kings Lynn,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kings Lynn valuers.
Half a year ago Jason, came dangerously close to the eighty-year mark with the lease on his leasehold apartment in Kings Lynn. In buying his property 18 years previously, the length of the lease was of minimal importance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Jason arranged for a lease extension just ahead of time in August. Jason and the freeholder via the management company eventually agreed on a premium of £5,000 . If the lease had fallen lower than 80 years, the amount would have gone up by at least £850.
In 2011 we were contacted by Dr Joshua Morel who, having bought a purpose-built flat in Kings Lynn in September 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparable flats in Kings Lynn with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 billed annually. The lease concluded on 24 February 2096. Considering the 71 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
In 2013 we were contacted by Mr and Mrs. D Bertrand who, having purchased a one bedroom apartment in Kings Lynn in January 2001. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical homes in Kings Lynn with 100 year plus lease were valued about £254,200. The average amount of ground rent was £60 billed yearly. The lease finished in 2076. Given that there were 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of legals.