The market value of a leasehold property in Patcham is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed in advance of the eighty year threshold. Statute enables Patcham qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The reason 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 generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Patcham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Patcham valuers.
16 months ago Lucas, started to get close to the 80-year threshold with the lease on his one bedroom flat in Patcham. In buying his property twenty years previously, the length of the lease was of little interest. Fortunately, he noticed he needed to take steps soon on a lease extension. Lucas extended the lease just under the wire last September. Lucas and the landlord eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the amount would have become more costly by at least £875.
In 2012 we were e-mailed by Mr and Mrs. Y Alexander who, having owned a one bedroom apartment in Patcham in February 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Patcham with an extended lease were worth £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease came to a finish on 1 January 2095. Given that there were 70 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2013 we were approached by Mr and Mrs. U Parker who, having purchased a one bedroom flat in Patcham in August 2008. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparative properties in Patcham with a long lease were worth £246,800. The average amount of ground rent was £60 billed monthly. The lease end date was in 2075. Given that there were 50 years left we calculated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of fees.