The re-sale value of a leasehold property in Withernsea depends on how many years the lease has left to run. If it is close to or less than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed well before the 80 year cut off point. Current legislation enables Withernsea qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander |
Irrespective of whether you are a tenant or a freeholder in Withernsea,the lease extension lawyers 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 Withernsea valuers.
Last Summer Ben, started to get close to the 80-year mark with the lease on his one bedroom apartment in Withernsea. Having purchased his flat two decades ago, the lease term was of little relevance. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. Ben was able to extend his lease at the eleventh hour in June. Ben and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If the lease had slid to less than eighty years, the price would have become more exhorbitant by at least £1,100.
In 2014 we were contacted by Mr and Mrs. J Hall who, having moved into a one bedroom apartment in Withernsea in July 2001. We are asked if we could estimate the price would be for a 90 year lease extension. Identical homes in Withernsea with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease terminated on 24 November 2086. Taking into account 60 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including professional charges.
In 2010 we were called by Dr Stanley González who, having was assigned a lease of a first floor flat in Withernsea in July 2011. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar flats in Withernsea with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease termination date was in 2097. Given that there were 71 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.