The market value of a leasehold property in Wheathampstead depends on how long the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded in advance of the 80 year threshold. Current legislation entitles Wheathampstead qualifying lessees to an additional term of ninety years on top of the existing term, at a notional rent (zero ground rent). The reason of the valuation is to arrive at an opinion of 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 further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Wheathampstead can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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 Wheathampstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Logan owned a high value flat in Wheathampstead being marketed with a lease of a few days over 61 years unexpired. Logan informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Logan to exercise his statutory right. Logan procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last March we were contacted by Dr O Williams , who acquired a first floor flat in Wheathampstead in February 2007. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable homes in Wheathampstead with a long lease were in the region of £233,200. The average amount of ground rent was £60 billed quarterly. The lease elapsed on 12 November 2086. Given that there were 61 years unexpired we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including legals.
In 2010 we were phoned by Mr I Khan who, having took over the lease of a garden apartment in Wheathampstead in June 2008. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar properties in Wheathampstead with 100 year plus lease were in the region of £166,800. The average amount of ground rent was £50 invoiced every twelve months. The lease expired in 2075. Taking into account 50 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus costs.