The market value of a leasehold property in Ottery St Mary is impacted by how long the lease has left to run. If it is close to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised well before the 80 year threshold. Statute enables Ottery St Mary qualifying lessees to an additional term of ninety years over and above the existing term, at a peppercorn rent (zero ground rent). The intention 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 residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancing solicitors that we work with handle Ottery St Mary lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing protracted correspondence with the landlord of her garden apartment in Ottery St Mary, Ashleigh started the lease extension process just as the lease was nearing the crucial 80-year deadline. The transaction was concluded in November 2007. The freeholder’s costs were negotiated to less than 600 GBP.
Dr L Baker completed a newly refurbished flat in Ottery St Mary in March 2001. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable flats in Ottery St Mary with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated in 2096. Considering the 70 years remaining we approximated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 plus fees.
Mrs Lydia Harris acquired a ground floor apartment in Ottery St Mary in September 2009. We are asked if we could approximate the price could be for a ninety year lease extension. Identical flats in Ottery St Mary with 100 year plus lease were worth £246,800. The average ground rent payable was £60 invoiced annually. The lease concluded on 19 May 2076. Considering the 50 years left we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including professional charges.