The market value of a leasehold property in Stanley depends on how long the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be addressed well before the 80 year cut off point. Statute enables Stanley qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). 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 conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The lawyers that we work with handle Stanley 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 conveyancing solicitor we work with provide it.
Two years ago Harrison, came seriously close to the 80-year threshold with the lease on his garden apartment in Stanley. In buying his flat 18 years previously, the lease term was of minimal interest. Fortunately, he recognised he would soon be paying an inflated amount for Extending the lease. Harrison arranged for a lease extension just under the wire in July. Harrison and the freeholder via the managing agents subsequently settled on sum of £5,500 . If the lease had fallen below 80 years, the premium would have become more exhorbitant by at least £900.
Dr M Clark completed a ground floor flat in Stanley in June 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Stanley with 100 year plus lease were in the region of £227,800. The mid-range ground rent payable was £45 collected yearly. The lease finished on 1 July 2091. Taking into account 65 years left we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
In 2014 we were phoned by Ms G Cox who, having bought a basement apartment in Stanley in August 2003. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparative premises in Stanley with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected monthly. The lease concluded in 2102. Taking into account 76 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.