The market value of a leasehold property in Machen is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded well before the 80 year threshold. Statute entitles Machen qualifying lessees to a ninety 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 intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society |
The conveyancing solicitors that we work with undertake Machen 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.
Jude was the the leasehold proprietor of a 2 bedroom apartment in Machen on the market with a lease of a little over 59 years unexpired. Jude informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Jude to invoke his statutory right. Jude procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last September we were phoned by Mr D Johnson , who bought a garden apartment in Machen in September 2011. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Similar premises in Machen with 100 year plus lease were in the region of £240,600. The mid-range ground rent payable was £65 invoiced monthly. The lease terminated on 14 October 2088. Taking into account 62 years left we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of legals.
Last Summer we were approach by Dr A James , who took over the lease of a garden flat in Machen in March 2005. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Machen with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 collected yearly. The lease elapsed in 2078. Taking into account 52 years outstanding we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including expenses.