The market value of a leasehold property in Usk is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when the lease still has 82 years to run so that a lease extension can be finalised prior to the 80 year threshold. Current legislation entitles Usk qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The reason 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.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Usk 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 lawyer we work with provide it.
Tyler owned a 2 bedroom apartment in Usk being marketed with a lease of a little over sixty years unexpired. Tyler on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2011 we were contacted by Mr and Mrs. J Ali who, having owned a ground floor flat in Usk in May 2007. The question was if we could estimate the premium could be to extend the lease by 90 years. Comparative flats in Usk with 100 year plus lease were in the region of £235,200. The average ground rent payable was £45 billed yearly. The lease expiry date was in 2091. Taking into account 66 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
In 2012 we were called by Mr and Mrs. U Phillips who, having owned a basement apartment in Usk in April 2000. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable properties in Usk with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 billed annually. The lease termination date was on 24 March 2102. Given that there were 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.