The market value of a leasehold property in Ludlow depends on how many years the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be concluded prior to the 80 year threshold. Current legislation enables Ludlow qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Leeds Building Society | |
| National Westminster Bank | |
| Virgin |
Lease extensions in Ludlow can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 in-depth market knowledge dealing with Ludlow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter was the the leasehold owner of a conversion apartment in Ludlow being marketed with a lease of a few days over 72 years outstanding. Dexter informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Dexter to invoke his statutory right. Dexter procured expert advice and secured an acceptable deal informally and readily saleable.
Last month we were e-mailed by Mr and Mrs. J Mason , who purchased a first floor apartment in Ludlow in February 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable flats in Ludlow with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected monthly. The lease expired on 20 May 2081. Taking into account 55 years left we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus legals.
Dr Bethan Roberts moved into a ground floor apartment in Ludlow in November 2004. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Identical properties in Ludlow with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced annually. The lease ended in 2101. Having 75 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.