The market value of a leasehold property in Studley is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised well before the 80 year cut off point. Statute entitles Studley qualifying lessees to an additional term of ninety years on top of the unexpired term, at a notional 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 properties in Studley with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Engaging our service gives you increased control over the value of your Studley leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oliver owned a conversion apartment in Studley on the market with a lease of fraction over 59 years left. Oliver on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Oliver to invoke his statutory right. Oliver procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last August we were contacted by Mr and Mrs. M Moore , who was assigned a lease of a one bedroom apartment in Studley in January 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Studley with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease finished in 2098. Given that there were 72 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus expenses.
Last Autumn we were e-mailed by Mr and Mrs. C Walker , who moved into a ground floor apartment in Studley in January 2009. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Studley with an extended lease were worth £233,200. The mid-range ground rent payable was £60 collected per annum. The lease expired in 2087. Considering the 61 years remaining we estimated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 not including legals.