The re-sale value of a leasehold property in Repton is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed prior to the eighty year cut off point. Statute enables Repton qualifying lessees to a 90 year extension added to their unexpired 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 determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors that we work with handle Repton 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.
Jack was the the leasehold proprietor of a 2 bedroom apartment in Repton on the market with a lease of just over 59 years remaining. Jack on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jack to exercise his statutory right. Jack procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
Last January we were phoned by Dr Teddy Miller , who was assigned a lease of a purpose-built apartment in Repton in October 2007. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparable flats in Repton with a long lease were in the region of £290,000. The mid-range amount of ground rent was £55 collected yearly. The lease concluded in 2105. Taking into account 80 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
Last October we were called by Dr Melissa Richardson , who owned a garden flat in Repton in January 2001. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative properties in Repton with an extended lease were in the region of £200,800. The average amount of ground rent was £65 collected every twelve months. The lease concluded in 2085. Given that there were 60 years remaining we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including costs.