The market value of a leasehold property in Stokesley depends on how long the lease has left to run. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that all matters can be addressed prior to the eighty year mark. Current legislation enables Stokesley qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancers that we work with procure Stokesley 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.
Following lengthy discussions with the freeholder of her first floor flat in Stokesley, Bethan initiated the lease extension process as the eighty year threshold was quickly approaching. The transaction completed in September 2009. The freeholder’s costs were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. P Hill , who owned a basement apartment in Stokesley in June 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Stokesley with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded in 2092. Taking into account 66 years unexpired we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
Last Winter we were called by Mr and Mrs. O Wright , who took over the lease of a newly refurbished flat in Stokesley in January 2002. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar homes in Stokesley with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2103. Considering the 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.