The market value of a leasehold property in Old Swan depends on how long the lease has remaining. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. 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 well before the 80 year threshold. Current legislation enables Old Swan qualifying lessees to an additional term of 90 years on top of the remaining term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
Retaining our service gives you increased control over the value of your Old Swan leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Lucas owned a high value flat in Old Swan being marketed with a lease of a little over 72 years left. Lucas on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Lucas to invoke his statutory right. Lucas procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2014 we were phoned by Ms Jasmine Evans who, having completed a purpose-built flat in Old Swan in November 1997. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Old Swan with 100 year plus lease were valued around £200,800. The average amount of ground rent was £65 collected quarterly. The lease concluded on 18 October 2086. Taking into account 60 years unexpired we calculated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus legals.
Last Autumn we were approach by Ms K Peterson , who acquired a purpose-built apartment in Old Swan in February 2000. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar residencies in Old Swan with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 billed quarterly. The lease concluded in 2097. Given that there were 71 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.