The re-sale value of a leasehold property in Lingfield depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded in advance of the 80 year mark. Statute enables Lingfield qualifying lessees to an additional term of ninety years over and above the unexpired term, at a notional rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Lingfield with more than 100 years left 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society |
The lawyers that we work with procure Lingfield 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 conveyancer we work with provide it.
Half a year ago Aarav, started to get close to the 80-year mark with the lease on his studio flat in Lingfield. In buying his property two decades ago, the lease term was of little relevance. Thankfully, he became aware that he needed to take action soon on a lease extension. Aarav extended the lease just in the nick of time last January. Aarav and the freeholder via the managing agents ultimately agreed on an amount of £6,000 . If the lease had dropped to less than 80 years, the sum would have increased by at least £875.
In 2009 we were approached by Mr and Mrs. N Vincent who, having completed a basement flat in Lingfield in August 1996. We are asked if we could approximate the price could be for a 90 year lease extension. Identical residencies in Lingfield with a long lease were worth £265,000. The average amount of ground rent was £50 billed per annum. The lease concluded in 2099. Taking into account 73 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2010 we were phoned by Mr and Mrs. D Nguyen who, having bought a garden flat in Lingfield in April 2002. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparable premises in Lingfield with an extended lease were worth £264,000. The average ground rent payable was £60 billed per annum. The lease finished on 23 June 2079. Having 53 years outstanding we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of legals.