The re-sale value of a leasehold property in West Bromwich depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised ahead of the 80 year threshold. Statute entitles West Bromwich qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount 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 one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society |
Irrespective of whether you are a tenant or a freeholder in West Bromwich,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Bromwich valuers.
Dexter was the the leasehold owner of a studio apartment in West Bromwich being marketed with a lease of just over fifty eight years unexpired. Dexter informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Dexter to invoke his statutory right. Dexter procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. V Jones acquired a one bedroom flat in West Bromwich in October 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparable premises in West Bromwich with an extended lease were worth £233,200. The average ground rent payable was £60 collected per annum. The lease termination date was on 7 September 2087. Given that there were 61 years remaining we approximated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of legals.
Mr Kai Turner owned a ground floor flat in West Bromwich in November 1999. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparable flats in West Bromwich with a long lease were in the region of £166,800. The average amount of ground rent was £50 billed quarterly. The lease finished on 3 August 2076. Given that there were 50 years remaining we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of costs.