The re-sale value of a leasehold property in Monmouth depends on how long the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed prior to the 80 year cut off point. Statute entitles Monmouth qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose 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 more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Yorkshire Building Society |
Lease extensions in Monmouth can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor 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 a wealth of experience procuring Monmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jamie was the the leasehold proprietor of a high value flat in Monmouth on the market with a lease of a little over fifty eight years unexpired. Jamie on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jamie to invoke his statutory right. Jamie procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
Last Summer we were called by Mr and Mrs. T Rivera , who completed a recently refurbished apartment in Monmouth in June 1997. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in Monmouth with a long lease were valued around £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease came to a finish in 2099. Taking into account 73 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2011 we were contacted by Mr G Murphy who, having was assigned a lease of a garden apartment in Monmouth in August 1999. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Monmouth with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 billed quarterly. The lease concluded in 2079. Having 53 years outstanding we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including expenses.