The re-sale value of a leasehold property in Perton depends on how long the lease has left to run. If it is close to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be addressed well before the 80 year threshold. Leasehold Reform legislation enables Perton qualifying lessees to an additional term of ninety years over and above the remaining term, at a peppercorn rent (zero 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 acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a landlord in Perton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Perton valuers.
Alex owned a conversion apartment in Perton on the market with a lease of just over sixty years left. Alex on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alex to invoke his statutory right. Alex obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Last Summer we were called by Mr P Taylor , who completed a purpose-built flat in Perton in April 1998. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative residencies in Perton with 100 year plus lease were valued around £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease concluded on 11 November 2106. Considering the 80 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
Last Autumn we were phoned by Mrs Robyn Campbell , who completed a basement apartment in Perton in April 2000. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparative residencies in Perton with an extended lease were worth £275,000. The average amount of ground rent was £45 invoiced annually. The lease ended on 27 March 2095. Having 69 years left we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.