The market value of a leasehold property in Rise Park depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be addressed ahead of the eighty year threshold. Statute enables Rise Park qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Santander | |
| TSB |
Lease extensions in Rise Park can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Rise Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Harrison, started to get close to the eighty-year threshold with the lease on his basement flat in Rise Park. In buying his property two decades ago, the length of the lease was of no concern. As luck would have it, he became aware that he needed to take action soon on a lease extension. Harrison extended the lease at the eleventh hour in September. Harrison and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If the lease had fallen lower than 80 years, the premium would have increased by at least £1,125.
Mr and Mrs. U Bailey purchased a garden flat in Rise Park in April 2010. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Similar flats in Rise Park with an extended lease were valued around £181,600. The average ground rent payable was £55 collected monthly. The lease elapsed on 8 March 2078. Considering the 52 years outstanding we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.
An example of a Lease Extension case for a Rise Park property is Flat b 14 Kemble Road in May 2014. The Tribunal assessed the value of the premium payable for the lease extension to be £9,761 This case affected 1 flat.