The re-sale value of a leasehold property in Lindfield depends on how many years the lease has remaining. If it is near to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that formalities can be finalised ahead of the 80 year cut off point. Current legislation entitles Lindfield qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Lindfield with over one hundred years remaining on the lease are sometimes referred to as ‘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 freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Santander |
The lawyers that we work with handle Lindfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Twenty four months ago Joshua, started to get close to the 80-year threshold with the lease on his studio apartment in Lindfield. In buying his property twenty years ago, the length of the lease was of minimal bearing. by good luck, he noticed he needed to take action soon on Extending the lease. Joshua was able to extend his lease just ahead of time in July. Joshua and the freeholder via the management company ultimately settled on a premium of £5,000 . If he had missed the deadline, the figure would have escalated by at least £975.
Last Summer we were e-mailed by Mr Theo Phillips , who purchased a purpose-built flat in Lindfield in November 2008. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable flats in Lindfield with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed in 2083. Given that there were 57 years unexpired we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.
Last month we were contacted by Mr Zachary Allen , who moved into a garden flat in Lindfield in September 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative residencies in Lindfield with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 collected monthly. The lease terminated in 2094. Given that there were 68 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.