The re-sale value of a leasehold property in Upper Tean is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded well before the eighty year cut off point. Current legislation entitles Upper Tean qualifying lessees to an additional term of ninety years in addition to the existing term, at a nominal rent (zero 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 Upper Tean with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| TSB | |
| The Mortgage Works |
Lease extensions in Upper Tean can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Upper Tean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the landlord of her two bedroom apartment in Upper Tean, Natasha commenced the lease extension process as the 80 year mark was fast advancing. The lease extension completed in August 2012. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. Y Bailey purchased a garden apartment in Upper Tean in July 1997. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Upper Tean with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease came to a finish in 2099. Having 73 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Last January we were e-mailed by Mr and Mrs. L Ramírez , who acquired a first floor flat in Upper Tean in August 2002. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative properties in Upper Tean with a long lease were worth £235,600. The mid-range amount of ground rent was £60 collected annually. The lease came to a finish on 7 April 2088. Taking into account 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus fees.