The market value of a leasehold property in Taffs Well depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be addressed prior to the 80 year cut off point. Statute enables Taffs Well qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Taffs Well with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Taffs Well,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Taffs Well valuers.
Nathaniel owned a high value flat in Taffs Well being marketed with a lease of just over 72 years unexpired. Nathaniel informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension 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 Nathaniel to invoke his statutory right. Nathaniel procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2011 we were approached by Dr H Torres who, having completed a one bedroom flat in Taffs Well in March 2012. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative residencies in Taffs Well with 100 year plus lease were in the region of £208,200. The mid-range ground rent payable was £65 invoiced annually. The lease expiry date was in 2087. Taking into account 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus legals.
Last Summer we were e-mailed by Dr Eliot Moore , who took over the lease of a studio flat in Taffs Well in January 2009. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Taffs Well with a long lease were valued about £260,000. The average ground rent payable was £50 collected monthly. The lease finished in 2098. Considering the 72 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.