The market value of a leasehold property in St Werburghs depends on how long the lease has remaining. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that all matters can be concluded ahead of the eighty year threshold. Statute entitles St Werburghs qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in St Werburghs with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society |
Retaining our service gives you increased control over the value of your St Werburghs leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Connor, started to get near to the eighty-year threshold with the lease on his garden apartment in St Werburghs. Having purchased his flat 19 years previously, the lease term was of no relevance. Luckily, he realised he would soon be paying way over the odds for a lease extension. Connor was able to extend his lease just under the wire in September. Connor and the landlord in the end settled on a premium of £5,500 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £900.
Last Autumn we were approach by Mr and Mrs. R Sharif , who owned a one bedroom apartment in St Werburghs in November 1999. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in St Werburghs with an extended lease were worth £200,000. The average amount of ground rent was £50 collected monthly. The lease expired on 21 February 2103. Given that there were 77 years left we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
Dr D Lee bought a ground floor flat in St Werburghs in July 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative homes in St Werburghs with an extended lease were valued around £260,200. The average amount of ground rent was £65 invoiced yearly. The lease lapsed in 2092. Having 66 years unexpired we approximated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 plus legals.