The market value of a leasehold property in Little Haven is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be concluded in advance of the 80 year cut off point. Statute entitles Little Haven qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose 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 Little Haven with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Little Haven leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Adam, came seriously close to the 80-year mark with the lease on his studio apartment in Little Haven. In buying his home twenty years ago, the lease term was of little relevance. by good luck, he realised he needed to take action soon on a lease extension. Adam was able to extend his lease at the eleventh hour in July. Adam and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If the lease had descended below 80 years, the premium would have escalated by at least £1,050.
In 2011 we were e-mailed by Dr Georgia Martinez who, having purchased a one bedroom flat in Little Haven in July 2009. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable homes in Little Haven with an extended lease were in the region of £186,000. The average amount of ground rent was £65 billed annually. The lease expired on 7 March 2084. Given that there were 58 years unexpired we calculated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.
Ms B Carter owned a one bedroom apartment in Little Haven in November 1997. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable flats in Little Haven with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ended in 2095. Having 69 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.