The market value of a leasehold property in Shipley depends on how many years 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 purchasing. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that formalities can be concluded prior to the eighty year threshold. Statute enables Shipley qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Shipley with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
Using our service will provide you increased control over the value of your Shipley leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Callum, came precariously close to the eighty-year threshold with the lease on his garden apartment in Shipley. In buying his flat 19 years ago, the lease term was of little relevance. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Callum was able to extend his lease at the eleventh hour last June. Callum and the freeholder via the management company subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,000.
Last Summer we were e-mailed by Mr and Mrs. U Vincent , who moved into a basement flat in Shipley in November 2006. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar premises in Shipley with 100 year plus lease were worth £166,800. The mid-range amount of ground rent was £50 billed per annum. The lease finished on 23 March 2076. Having 50 years as a residual term we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.
In 2010 we were called by Dr K Roberts who, having owned a garden apartment in Shipley in April 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Identical homes in Shipley with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease came to a finish on 16 November 2096. Given that there were 70 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.