The re-sale value of a leasehold property in Sprowston depends on how many years the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years to run so that a lease extension can be finalised in advance of the eighty year cut off point. Statute enables Sprowston qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum 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 additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works |
Engaging our service will provide you increased control over the value of your Sprowston leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her studio apartment in Sprowston, Ellie initiated the lease extension process as the 80 year threshold was quickly coming. The lease extension was concluded in January 2007. The freeholder’s costs were negotiated to less than 600 pounds.
Mr and Mrs. D Collins owned a one bedroom apartment in Sprowston in September 2007. The question was if we could approximate the price could be for a ninety year lease extension. Comparative properties in Sprowston with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 18 July 2083. Having 57 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus costs.
Last Summer we were e-mailed by Dr U Thomas , who bought a purpose-built flat in Sprowston in January 2002. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable properties in Sprowston with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease concluded on 3 January 2103. Given that there were 77 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.