The re-sale value of a leasehold property in Tadcaster is impacted by how long the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed ahead of the 80 year cut off point. Statute entitles Tadcaster qualifying lessees to an additional term of 90 years on top of the unexpired term, at a nominal rent (no ground rent). The reason of the valuation is to determine the premium 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 approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancers that we work with undertake Tadcaster 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.
Ethan owned a conversion apartment in Tadcaster on the market with a lease of a few days over sixty years unexpired. Ethan informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last month we were phoned by Dr Caitlin Torres , who purchased a first floor apartment in Tadcaster in May 2007. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Similar homes in Tadcaster with an extended lease were in the region of £233,200. The average ground rent payable was £60 invoiced quarterly. The lease came to a finish in 2087. Taking into account 61 years left we estimated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus legals.
In 2009 we were approached by Mr K López who, having owned a one bedroom flat in Tadcaster in January 1999. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative flats in Tadcaster with an extended lease were in the region of £171,800. The average ground rent payable was £55 invoiced annually. The lease expired in 2076. Considering the 50 years left we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus fees.