The market value of a leasehold property in Rainhill is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded in advance of the eighty year threshold. Leasehold Reform legislation entitles Rainhill qualifying lessees to an additional term of ninety years over and above the unexpired term, at a peppercorn rent (no ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Rainhill with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Rainhill,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rainhill valuers.
Omar was the the leasehold proprietor of a 2 bedroom flat in Rainhill on the market with a lease of fraction over 61 years unexpired. Omar on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Omar to exercise his statutory right. Omar procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr Jodie Ward completed a garden apartment in Rainhill in June 2004. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparable properties in Rainhill with a long lease were valued around £260,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease expired on 7 February 2098. Having 72 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.
Last Autumn we were phoned by Mr and Mrs. R García , who moved into a studio flat in Rainhill in October 2012. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable properties in Rainhill with a long lease were in the region of £261,600. The average amount of ground rent was £60 collected monthly. The lease lapsed in 2078. Having 52 years left we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of costs.