The re-sale value of a leasehold property in Pudsey depends on how many years the lease has remaining. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that formalities can be concluded ahead of the 80 year cut off point. Leasehold Reform legislation entitles Pudsey qualifying lessees to an additional term of ninety years on top of the remaining term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you increased control over the value of your Pudsey leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her basement flat in Pudsey, Chantelle commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was concluded in August 2014. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were approach by Dr O Moore , who took over the lease of a garden flat in Pudsey in February 2011. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical premises in Pudsey with 100 year plus lease were in the region of £237,600. The average ground rent payable was £45 invoiced monthly. The lease finished in 2092. Considering the 67 years outstanding we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of costs.
In 2014 we were contacted by Dr M Nelson who, having was assigned a lease of a purpose-built flat in Pudsey in April 2003. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Comparative homes in Pudsey with a long lease were valued about £280,000. The average ground rent payable was £55 billed monthly. The lease expired on 1 May 2103. Taking into account 78 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.