The re-sale value of a leasehold property in Willenhall depends on how many years the lease has left to run. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised in advance of the eighty year cut off point. Leasehold Reform legislation enables Willenhall qualifying lessees to an additional term of 90 years over and above the unexpired term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Santander |
The lawyers that we work with procure Willenhall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Mason was the the leasehold proprietor of a conversion flat in Willenhall being marketed with a lease of just over sixty years unexpired. Mason on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Mason to exercise his statutory right. Mason procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Winter we were called by Dr U King , who owned a basement flat in Willenhall in October 1996. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparative homes in Willenhall with 100 year plus lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease expired on 9 April 2097. Taking into account 71 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
Last Winter we were phoned by Mrs Ella Davis , who was assigned a lease of a garden flat in Willenhall in April 2011. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical homes in Willenhall with an extended lease were valued about £254,200. The average ground rent payable was £60 collected monthly. The lease concluded on 8 June 2077. Given that there were 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of professional charges.