The re-sale value of a leasehold property in Rickmansworth depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be concluded well before the eighty year threshold. Leasehold Reform legislation entitles Rickmansworth qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention 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.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Rickmansworth can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Rickmansworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Alfie, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Rickmansworth. Having purchased his property two decades ago, the lease term was of no interest. As luck would have it, he became aware that he needed to take action soon on a lease extension. Alfie extended the lease just under the wire in May. Alfie and the landlord who owned the flat above eventually settled on sum of £5,500 . If he not met the deadline, the sum would have become more costly by at least £1,150.
In 2013 we were called by Mr Nathaniel Phillips who, having was assigned a lease of a ground floor apartment in Rickmansworth in October 1996. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable homes in Rickmansworth with a long lease were valued around £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded on 17 July 2098. Given that there were 73 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
An example of a Lease Extension case for a Rickmansworth flat is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case was in relation to 3 flats. The unexpired term was 71 years.