The market value of a leasehold property in Usk depends on how long the lease has left to run. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. 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 addressed prior to the 80 year cut off point. Current legislation entitles Usk qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The lawyers that we work with procure 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.
Subsequent to protracted negotiations with the freeholder of her purpose-built apartment in Usk, Georgia started the lease extension process as the eighty year mark was swiftly advancing. The transaction was concluded in March 2010. The landlord’s costs were negotiated to less than four hundred GBP.
Mr and Mrs. D François purchased a basement apartment in Usk in February 2009. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparative premises in Usk with 100 year plus lease were worth £245,000. The average ground rent payable was £50 collected yearly. The lease expired in 2094. Considering the 68 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Last Summer we were contacted by Dr Henry López , who owned a recently refurbished flat in Usk in August 2010. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative flats in Usk with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish on 6 October 2105. Having 79 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.