The re-sale value of a leasehold property in Leyland is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded prior to the 80 year cut off point. Leasehold Reform legislation enables Leyland qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Leyland with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Leyland can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Leyland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Blake was the the leasehold proprietor of a studio apartment in Leyland being marketed with a lease of a little over 61 years outstanding. Blake on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last month we were called by Mr Jayden Thomas , who owned a one bedroom apartment in Leyland in March 2003. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar residencies in Leyland with an extended lease were in the region of £243,000. The average ground rent payable was £65 billed quarterly. The lease came to a finish in 2088. Taking into account 63 years unexpired we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of fees.
Mrs V Reed completed a one bedroom flat in Leyland in September 1999. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable homes in Leyland with an extended lease were valued about £181,600. The mid-range ground rent payable was £55 billed monthly. The lease ended on 26 June 2077. Taking into account 52 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including legals.