The market value of a leasehold property in Wednesbury depends on how long the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the lease extension process when a lease still has 82 years to run so that formalities can be addressed well before the eighty year threshold. Current legislation enables Wednesbury 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 reason of the valuation is to arrive at an opinion of 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 in excess of 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 equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Wednesbury,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wednesbury valuers.
Trailing lengthy correspondence with the freeholder of her ground floor apartment in Wednesbury, Eleanor started the lease extension process as the eighty year deadline was swiftly approaching. The lease extension was finalised in April 2015. The freeholder’s costs were negotiated to below 650 pounds.
Mr and Mrs. E Lefebvre owned a purpose-built apartment in Wednesbury in January 2004. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Wednesbury with an extended lease were worth £270,000. The average amount of ground rent was £55 invoiced monthly. The lease concluded on 21 May 2101. Given that there were 75 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
Dr Y Rose moved into a garden apartment in Wednesbury in February 1999. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative flats in Wednesbury with an extended lease were valued about £173,800. The average ground rent payable was £60 billed quarterly. The lease terminated on 15 July 2081. Taking into account 55 years left we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.