The re-sale value of a leasehold property in Willerby depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised prior to the eighty year mark. Statute entitles Willerby qualifying lessees to an additional term of 90 years on top of the unexpired term, at a nominal rent (zero 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 purchase of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Halifax | |
| TSB | |
| The Mortgage Works | |
| Yorkshire Building Society |
Retaining our service gives you better control over the value of your Willerby leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Elijah owned a conversion apartment in Willerby being sold with a lease of just over fifty eight years unexpired. Elijah informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen 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 doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Last Winter we were contacted by Ms K Allen , who completed a first floor flat in Willerby in August 1998. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Willerby with an extended lease were in the region of £223,400. The average amount of ground rent was £60 billed per annum. The lease elapsed on 5 July 2085. Considering the 59 years remaining we estimated the premium to the landlord to extend the lease to be within £27,600 and £31,800 plus professional charges.
Dr Lucy Hernández owned a purpose-built flat in Willerby in January 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Willerby with 100 year plus lease were valued about £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease concluded on 1 February 2105. Given that there were 79 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.