The re-sale value of a leasehold property in South Cave is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be addressed in advance of the eighty year mark. Statute enables South Cave qualifying lessees to an additional term of 90 years on top of the existing term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in South Cave with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
The lawyers that we work with handle South Cave 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.
Archie owned a conversion flat in South Cave on the market with a lease of fraction over fifty eight years outstanding. Archie on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Archie to exercise his statutory right. Archie obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Dr Anna Jackson completed a purpose-built flat in South Cave in June 2010. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparable premises in South Cave with an extended lease were worth £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish on 15 September 2092. Given that there were 66 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Last Winter we were approach by Mr and Mrs. P Reed , who owned a garden apartment in South Cave in August 2009. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Similar properties in South Cave with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease finished in 2103. Given that there were 77 years outstanding we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.