The market value of a leasehold property in Miles Platting is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that formalities can be concluded ahead of the eighty year mark. Leasehold Reform legislation entitles Miles Platting qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Miles Platting with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Miles Platting,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Miles Platting valuers.
Last Spring Omar, started to get near to the 80-year threshold with the lease on his one bedroom flat in Miles Platting. In buying his property twenty years ago, the length of the lease was of minimal relevance. Luckily, he recognised he needed to take steps soon on Extending the lease. Omar extended the lease at the eleventh hour in January. Omar and the freeholder ultimately agreed on the final figure of £6,000 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £1,100.
In 2012 we were approached by Mr and Mrs. P Moore who, having acquired a one bedroom flat in Miles Platting in March 2011. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparable residencies in Miles Platting with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced monthly. The lease elapsed on 21 March 2086. Taking into account 60 years as a residual term we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including fees.
In 2010 we were approached by Dr D Jones who, having bought a one bedroom apartment in Miles Platting in June 2006. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable premises in Miles Platting with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ran out in 2097. Having 71 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.