The re-sale value of a leasehold property in Mid Wales depends on how long the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded ahead of the 80 year threshold. Leasehold Reform legislation enables Mid Wales qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| The Mortgage Works |
The lawyers that we work with undertake Mid Wales 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.
Ryan was the the leasehold proprietor of a conversion apartment in Mid Wales on the market with a lease of fraction over sixty years left. Ryan informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2010 we were phoned by Mr and Mrs. M Wilson who, having bought a first floor apartment in Mid Wales in February 2012. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative homes in Mid Wales with 100 year plus lease were valued about £206,200. The mid-range ground rent payable was £60 invoiced annually. The lease finished in 2082. Considering the 56 years left we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including expenses.
Dr V James moved into a ground floor flat in Mid Wales in January 2009. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Mid Wales with an extended lease were in the region of £300,000. The average ground rent payable was £50 collected quarterly. The lease lapsed on 2 November 2102. Considering the 76 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.