The re-sale value of a leasehold property in Longton is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised ahead of the 80 year cut off point. Statute enables Longton qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 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 acquisition of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Longton can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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 dealing with Longton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy correspondence with the freeholder of her studio flat in Longton, Georgia initiated the lease extension process as the 80 year threshold was rapidly approaching. The legal work was concluded in October 2014. The landlord’s fees were kept to an absolute minimum.
Last January we were called by Mr and Mrs. W Moore , who purchased a one bedroom apartment in Longton in March 2012. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable homes in Longton with a long lease were valued around £256,600. The average ground rent payable was £60 billed monthly. The lease came to a finish in 2078. Given that there were 52 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 not including professional charges.
Mrs Alicia Ward owned a first floor apartment in Longton in June 2010. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar properties in Longton with 100 year plus lease were valued around £218,000. The mid-range ground rent payable was £45 invoiced annually. The lease terminated in 2089. Having 63 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including fees.