The market value of a leasehold property in Tickhill is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised prior to the 80 year mark. Current legislation entitles Tickhill qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The purpose 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 premises in Tickhill with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Retaining our service will provide you enhanced control over the value of your Tickhill leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Alexander, started to get close to the eighty-year threshold with the lease on his studio flat in Tickhill. In buying his home two decades ago, the lease term was of little significance. As luck would have it, he realised he needed to take steps soon on a lease extension. Alexander arranged for a lease extension at the eleventh hour last March. Alexander and the freeholder in the end settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have increased by at least £950.
In 2009 we were e-mailed by Dr C Díaz who, having purchased a one bedroom flat in Tickhill in November 2012. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Tickhill with 100 year plus lease were in the region of £233,200. The average ground rent payable was £60 invoiced quarterly. The lease finished on 1 November 2087. Taking into account 61 years left we estimated the premium to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of professional charges.
Last Autumn we were contacted by Mr and Mrs. E Brown , who was assigned a lease of a basement flat in Tickhill in January 2011. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparative residencies in Tickhill with 100 year plus lease were worth £171,800. The average ground rent payable was £55 billed yearly. The lease concluded on 27 May 2076. Given that there were 50 years as a residual term we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 plus legals.