The market value of a leasehold property in Wellesbourne is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that formalities can be finalised ahead of the eighty year cut off point. Current legislation enables Wellesbourne qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Yorkshire Building Society |
Lease extensions in Wellesbourne can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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 a wealth of experience dealing with Wellesbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Gabriel, started to get near to the eighty-year mark with the lease on his two bedroom flat in Wellesbourne. In buying his home 19 years previously, the lease term was of no bearing. Thankfully, he recognised he needed to take steps soon on Extending the lease. Gabriel extended the lease just ahead of time in January. Gabriel and the freeholder via the managing agents eventually agreed on sum of £6,000 . If he failed to meet the deadline, the premium would have become more costly by at least £875.
In 2014 we were phoned by Mrs K Howard who, having bought a one bedroom flat in Wellesbourne in October 1998. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in Wellesbourne with a long lease were worth £280,000. The mid-range ground rent payable was £45 collected yearly. The lease came to a finish in 2096. Having 70 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
In 2013 we were approached by Dr A Murphy who, having purchased a studio flat in Wellesbourne in June 2006. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable properties in Wellesbourne with an extended lease were valued around £218,400. The mid-range amount of ground rent was £60 billed annually. The lease lapsed on 9 September 2085. Considering the 59 years remaining we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including expenses.