The market value of a leasehold property in The Meadows is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be concluded well before the 80 year mark. Leasehold Reform legislation enables The Meadows qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose 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 accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| Santander | |
| Royal Bank of Scotland | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in The Meadows,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 experience and the close ties they enjoy with The Meadows valuers.
Harvey was the the leasehold owner of a high value flat in The Meadows being marketed with a lease of just over fifty eight years remaining. Harvey on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harvey to exercise his statutory right. Harvey procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Winter we were called by Mr and Mrs. R Ward , who completed a newly refurbished apartment in The Meadows in May 1995. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in The Meadows with an extended lease were valued around £290,000. The average ground rent payable was £45 billed yearly. The lease end date was in 2099. Taking into account 73 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Last Winter we were phoned by Dr C Young , who moved into a garden apartment in The Meadows in January 1995. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable premises in The Meadows with 100 year plus lease were valued around £240,600. The average amount of ground rent was £60 billed monthly. The lease lapsed on 28 May 2088. Taking into account 62 years unexpired we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.