The market value of a leasehold property in Purfleet is impacted by how long the lease has remaining. If it is near to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that a lease extension can be addressed prior to the eighty year cut off point. Leasehold Reform legislation entitles Purfleet qualifying lessees to an additional term of ninety years on top of the unexpired term, at a nominal rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank |
Irrespective of whether you are a tenant or a freeholder in Purfleet,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 Purfleet valuers.
Trailing protracted negotiations with the freeholder of her purpose-built flat in Purfleet, Catherine initiated the lease extension process just as the lease was nearing the critical 80-year mark. The lease extension was concluded in February 2007. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. T Thompson moved into a first floor apartment in Purfleet in June 2006. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar homes in Purfleet with 100 year plus lease were worth £218,000. The average ground rent payable was £45 collected monthly. The lease ended in 2089. Given that there were 63 years left we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including fees.
An example of a Lease Extension case for a Purfleet property is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case related to 13 flats. The unexpired term was 76 years.