The re-sale value of a leasehold property in Locks Heath is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that all matters can be concluded ahead of the 80 year threshold. Leasehold Reform legislation entitles Locks Heath qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety 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.
Leasehold premises in Locks Heath with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Halifax | |
| Skipton Building Society |
The conveyancing solicitors that we work with handle Locks Heath 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.
Trailing protracted discussions with the freeholder of her basement apartment in Locks Heath, Robyn commenced the lease extension process just as the lease was approaching the critical eighty-year mark. The lease extension completed in April 2008. The freeholder’s fees were restricted to a tad over 550 GBP.
In 2013 we were contacted by Mr and Mrs. C Scott who, having completed a one bedroom apartment in Locks Heath in April 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Locks Heath with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 12 October 2104. Considering the 78 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £7,600 and £8,800 plus costs.
Dr Isabel Laurent took over the lease of a first floor apartment in Locks Heath in September 2007. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable residencies in Locks Heath with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 invoiced yearly. The lease elapsed on 24 February 2093. Taking into account 67 years outstanding we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 plus legals.