The market value of a leasehold property in Snodland is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed well before the eighty year cut off point. Leasehold Reform legislation enables Snodland qualifying lessees to an additional term of ninety years over and above the remaining term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Snodland,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Snodland valuers.
Last Summer Aarav, started to get close to the 80-year threshold with the lease on his basement flat in Snodland. In buying his home two decades ago, the unexpired term was of no interest. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Aarav extended the lease just under the wire last June. Aarav and the landlord who owned the flat above in the end agreed on sum of £5,000 . If he failed to meet the deadline, the premium would have increased by at least £1,075.
Dr Ethan Phillips completed a one bedroom flat in Snodland in January 2010. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Comparable residencies in Snodland with an extended lease were in the region of £275,000. The average amount of ground rent was £55 invoiced every twelve months. The lease end date was in 2102. Taking into account 76 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
In 2014 we were e-mailed by Mr and Mrs. K David who, having acquired a first floor flat in Snodland in August 2006. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar residencies in Snodland with an extended lease were in the region of £176,200. The average ground rent payable was £65 invoiced every twelve months. The lease terminated on 6 September 2082. Taking into account 56 years outstanding we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including costs.