The re-sale value of a leasehold property in Petersfield is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that formalities can be concluded prior to the 80 year threshold. Statute entitles Petersfield qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). 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 generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Santander | |
| Skipton Building Society |
Lease extensions in Petersfield can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Petersfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas was the the leasehold owner of a conversion apartment in Petersfield on the market with a lease of a few days over 72 years remaining. Lucas informally spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Lucas to exercise his statutory right. Lucas procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr and Mrs. S Mason bought a one bedroom apartment in Petersfield in July 1998. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Similar properties in Petersfield with 100 year plus lease were valued around £183,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease ran out on 8 April 2083. Taking into account 57 years outstanding we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.
In 2011 we were phoned by Mr and Mrs. F López who, having completed a first floor apartment in Petersfield in February 2001. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Similar residencies in Petersfield with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 invoiced yearly. The lease end date was on 27 October 2094. Having 68 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.