Valley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Valley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Valley you should see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Valley with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Valley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Valley valuers.
Seth was the the leasehold owner of a 2 bedroom flat in Valley being sold with a lease of just over 59 years unexpired. Seth informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Seth to invoke his statutory right. Seth obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. E Scott purchased a one bedroom flat in Valley in April 2011. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Valley with an extended lease were valued about £280,000. The average ground rent payable was £55 invoiced quarterly. The lease concluded on 8 April 2104. Considering the 78 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
Last year we were approach by Mr John David , who owned a ground floor flat in Valley in April 2012. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Valley with a long lease were worth £186,000. The mid-range ground rent payable was £65 collected yearly. The lease ended on 28 March 2084. Considering the 58 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 not including costs.