The re-sale value of a leasehold property in Tunbridge Wells is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised prior to the eighty year cut off point. Leasehold Reform legislation enables Tunbridge Wells qualifying lessees to acquire a lease extension of 90 years on top of 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 Tunbridge Wells with over one hundred years remaining 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank | |
| TSB | |
| Yorkshire Building Society |
The lawyers that we work with procure Tunbridge Wells 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.
Following unsuccessful correspondence with the landlord of her first floor flat in Tunbridge Wells, Anna commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The transaction was finalised in September 2009. The landlord’s costs were restricted to below 600 pounds.
Last October we were approach by Mr I Nguyen , who bought a purpose-built flat in Tunbridge Wells in January 2001. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Comparative properties in Tunbridge Wells with a long lease were in the region of £191,400. The average ground rent payable was £55 billed every twelve months. The lease termination date was on 18 March 2080. Having 54 years left we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 plus professional charges.
Mrs Rebecca Murphy purchased a garden flat in Tunbridge Wells in March 1996. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical flats in Tunbridge Wells with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 billed yearly. The lease terminated on 11 July 2100. Taking into account 74 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.