The re-sale value of a leasehold property in Ormskirk depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed in advance of the eighty year cut off point. Leasehold Reform legislation enables Ormskirk qualifying lessees to an additional term of 90 years in addition to the existing term, at a notional rent (no ground rent). The intention of the valuation is to determine the amount 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 remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Santander | |
| The Mortgage Works | |
| Virgin |
Using our service gives you better control over the value of your Ormskirk leasehold, as your property will be more valuable and saleable in relation to the 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.
In the wake of eight months of lengthy correspondence with the landlord of her ground floor apartment in Ormskirk, Hollie started the lease extension process just as her lease was coming close to the critical 80-year threshold. The lease extension was finalised in April 2010. The landlord’s costs were negotiated to under 450 pounds.
In 2014 we were contacted by Mr and Mrs. Y Bailey who, having acquired a studio flat in Ormskirk in May 2005. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar flats in Ormskirk with an extended lease were in the region of £255,000. The average amount of ground rent was £50 invoiced per annum. The lease ran out in 2097. Taking into account 71 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Last Winter we were called by Mr P Bertrand , who took over the lease of a recently refurbished flat in Ormskirk in October 2006. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative residencies in Ormskirk with 100 year plus lease were valued around £254,200. The average ground rent payable was £60 billed yearly. The lease finished in 2077. Having 51 years remaining we estimated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of fees.