The re-sale value of a leasehold property in Porthmadog is impacted by how many years 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 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 concluded well before the eighty year cut off point. Leasehold Reform legislation enables Porthmadog qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Porthmadog with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
The lawyers that we work with undertake Porthmadog 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.
Stanley owned a high value flat in Porthmadog being sold with a lease of fraction over fifty eight years unexpired. Stanley on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Stanley to invoke his statutory right. Stanley obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
Dr Ben Lambert purchased a one bedroom flat in Porthmadog in July 2005. The question was if we could estimate the price could be for a ninety year lease extension. Comparative homes in Porthmadog with 100 year plus lease were in the region of £233,200. The mid-range amount of ground rent was £60 billed quarterly. The lease ended on 23 May 2087. Given that there were 61 years as a residual term we calculated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of expenses.
Dr Olivia Harris completed a first floor apartment in Porthmadog in November 2010. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable residencies in Porthmadog with 100 year plus lease were in the region of £171,800. The average amount of ground rent was £55 billed per annum. The lease expired on 11 October 2076. Considering the 50 years as a residual term we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including professional charges.