The re-sale value of a leasehold property in Purton depends on how long the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be finalised in advance of the 80 year cut off point. Statute entitles Purton qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Purton with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Yorkshire Building Society |
The lawyers that we work with procure Purton 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 conveyancer we work with provide it.
Half a year ago Dexter, came dangerously close to the eighty-year threshold with the lease on his first floor flat in Purton. Having purchased his flat 19 years previously, the length of the lease was of minimal bearing. Fortunately, he noticed he needed to take action soon on Extending the lease. Dexter extended the lease at the eleventh hour last September. Dexter and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If he not met the deadline, the sum would have gone up by a minimum £1,125.
Last February we were phoned by Ms N Gunderson , who bought a basement apartment in Purton in June 1999. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparable properties in Purton with an extended lease were in the region of £193,400. The average amount of ground rent was £65 billed quarterly. The lease concluded on 14 February 2085. Given that there were 59 years unexpired we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.
Mrs V Anderson acquired a first floor apartment in Purton in August 2000. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical premises in Purton with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 invoiced quarterly. The lease ended on 16 June 2096. Given that there were 70 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.