The market value of a leasehold property in Messingham depends on how many years the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded in advance of the 80 year threshold. Leasehold Reform legislation enables Messingham qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a nominal rent (no ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold 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 residence will be equivalent in value to 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Messingham can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Messingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jayden was the the leasehold owner of a 2 bedroom apartment in Messingham being sold with a lease of fraction over 72 years remaining. Jayden on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Last month we were contacted by Mr and Mrs. C Jones , who acquired a ground floor apartment in Messingham in September 1995. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar residencies in Messingham with 100 year plus lease were in the region of £220,400. The average amount of ground rent was £45 collected quarterly. The lease concluded on 23 May 2090. Taking into account 64 years outstanding we estimated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including professional charges.
Last Autumn we were contacted by Mrs Isabella Torres , who completed a studio apartment in Messingham in March 2004. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable properties in Messingham with 100 year plus lease were valued about £270,000. The mid-range ground rent payable was £55 invoiced yearly. The lease concluded in 2101. Having 75 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.