The market value of a leasehold property in New Milton depends on how long the lease has remaining. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that formalities can be concluded in advance of the 80 year threshold. Leasehold Reform legislation enables New Milton qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (zero ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Using our service will provide you enhanced control over the value of your New Milton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ethan owned a high value flat in New Milton on the market with a lease of a little over 72 years outstanding. Ethan on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ethan to exercise his statutory right. Ethan procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2014 we were phoned by Ms Y Vincent who, having completed a studio flat in New Milton in March 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in New Milton with an extended lease were valued about £176,200. The average amount of ground rent was £65 invoiced monthly. The lease came to a finish on 19 June 2082. Having 56 years remaining we approximated the premium to the landlord to extend the lease to be between £29,500 and £34,000 plus fees.
In 2009 we were contacted by Mrs U Clark who, having owned a one bedroom flat in New Milton in February 2004. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparable residencies in New Milton with a long lease were in the region of £242,600. The mid-range ground rent payable was £45 invoiced annually. The lease came to a finish in 2093. Considering the 67 years unexpired we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of expenses.