The re-sale value of a leasehold property in Townhill depends on how many years the lease has left to run. If it is near to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to 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 finalised in advance of the eighty year threshold. Current legislation enables Townhill qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Townhill with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland | |
| Virgin |
Engaging our service gives you better control over the value of your Townhill leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the freeholder of her ground floor flat in Townhill, Lauren commenced the lease extension process as the 80 year mark was swiftly nearing. The legal work was finalised in October 2005. The freeholder’s fees were restricted to about 600 pounds.
In 2013 we were phoned by Mrs Morgan Sharif who, having completed a one bedroom apartment in Townhill in March 1997. The question was if we could estimate the premium would be for a 90 year lease extension. Identical residencies in Townhill with a long lease were worth £250,400. The average amount of ground rent was £65 billed annually. The lease terminated in 2090. Taking into account 64 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including fees.
In 2010 we were phoned by Dr A Anderson who, having acquired a basement flat in Townhill in May 2005. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable homes in Townhill with an extended lease were in the region of £189,000. The average ground rent payable was £55 invoiced monthly. The lease finished on 8 April 2079. Given that there were 53 years outstanding we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.