The market value of a leasehold property in Red Lodge is impacted by how long the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that a lease extension can be addressed in advance of the 80 year threshold. Statute enables Red Lodge qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Red Lodge with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Skipton Building Society | |
| TSB |
Regardless of whether you are a tenant or a landlord in Red Lodge,the lease extension lawyers 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 Red Lodge valuers.
Trailing protracted negotiations with the landlord of her basement apartment in Red Lodge, Laura initiated the lease extension process as the 80 year deadline was rapidly approaching. The lease extension was finalised in June 2013. The landlord’s charges were restricted to approximately 600 GBP.
Dr D Jackson owned a purpose-built apartment in Red Lodge in January 2000. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable premises in Red Lodge with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease end date was in 2105. Taking into account 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Last month we were phoned by Mrs H Cook , who purchased a first floor apartment in Red Lodge in November 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Red Lodge with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £65 invoiced monthly. The lease lapsed on 15 November 2094. Having 68 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.