The re-sale value of a leasehold property in Undy is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be finalised ahead of the 80 year mark. Current legislation enables Undy qualifying lessees to acquire 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 premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Undy can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Undy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ibrahim was the the leasehold owner of a 2 bedroom apartment in Undy on the market with a lease of a little over 59 years remaining. Ibrahim informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2011 we were called by Dr Joseph Williams who, having purchased a basement apartment in Undy in August 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Undy with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected monthly. The lease ended in 2088. Given that there were 62 years left we estimated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.
In 2013 we were approached by Mr and Mrs. F Laurent who, having owned a recently refurbished flat in Undy in November 1995. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical flats in Undy with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish on 14 July 2099. Having 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.