The re-sale value of a leasehold property in Padstow is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is ideal to start the lease extension process when the lease still has 82 years remaining so that all matters can be addressed prior to the 80 year threshold. Current legislation entitles Padstow qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service will provide you enhanced control over the value of your Padstow leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian owned a high value flat in Padstow being marketed with a lease of just over 72 years left. Sebastian on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Ms Y García bought a one bedroom apartment in Padstow in August 2012. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative residencies in Padstow with an extended lease were worth £189,000. The average amount of ground rent was £55 invoiced annually. The lease came to a finish in 2079. Having 53 years left we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.
Last Summer we were approach by Ms Imogen Bailey , who bought a basement apartment in Padstow in November 2012. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical flats in Padstow with a long lease were worth £290,000. The mid-range ground rent payable was £45 collected quarterly. The lease ended on 26 May 2099. Considering the 73 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.