The market value of a leasehold property in Lound is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded in advance of the eighty year cut off point. Current legislation enables Lound qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Lound with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society |
The lawyers that we work with handle Lound 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.
After protracted negotiations with the freeholder of her garden apartment in Lound, Naomi commenced the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction completed in August 2007. The landlord’s fees were restricted to less than 600 pounds.
In 2012 we were e-mailed by Dr P Walker who, having bought a one bedroom apartment in Lound in April 2004. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Identical premises in Lound with a long lease were worth £168,800. The mid-range amount of ground rent was £60 collected quarterly. The lease ended on 17 March 2081. Given that there were 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.
In 2012 we were approached by Dr Isaac Taylor who, having owned a one bedroom apartment in Lound in April 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Similar properties in Lound with a long lease were worth £235,200. The mid-range ground rent payable was £45 billed per annum. The lease elapsed in 2092. Taking into account 66 years remaining we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.