The re-sale value of a leasehold property in Mountain Ash is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the lease extension process when the lease still has 82 years remaining so that formalities can be addressed in advance of the 80 year cut off point. Statute entitles Mountain Ash qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of ninety 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 considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
Engaging our service will provide you increased control over the value of your Mountain Ash leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jude owned a 2 bedroom apartment in Mountain Ash on the market with a lease of fraction over 61 years outstanding. Jude on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jude to exercise his statutory right. Jude obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were contacted by Ms M Sharif , who moved into a recently refurbished flat in Mountain Ash in March 2008. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical homes in Mountain Ash with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out in 2086. Having 60 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of fees.
Last month we were e-mailed by Ms B Thomas , who moved into a one bedroom flat in Mountain Ash in March 1998. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparable premises in Mountain Ash with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 collected quarterly. The lease expired in 2097. Having 71 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.