The market value of a leasehold property in Worcester depends on how long the lease has remaining. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised well before the 80 year mark. Leasehold Reform legislation entitles Worcester qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Worcester with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Halifax | |
| The Mortgage Works | |
| Virgin |
Using our service gives you increased control over the value of your Worcester leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Kai, started to get near to the eighty-year mark with the lease on his garden apartment in Worcester. In buying his property 18 years previously, the unexpired term was of minimal interest. by good luck, he became aware that he needed to take steps soon on a lease extension. Kai was able to extend his lease at the eleventh hour in June. Kai and the landlord subsequently settled on a premium of £6,000 . If the lease had slipped to less than eighty years, the sum would have escalated by at least £950.
In 2013 we were e-mailed by Dr H Wilson who, having completed a first floor apartment in Worcester in January 2008. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Worcester with a long lease were valued around £285,000. The mid-range ground rent payable was £45 collected annually. The lease expired in 2097. Given that there were 71 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Dr Joseph Torres purchased a one bedroom apartment in Worcester in September 2000. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Similar premises in Worcester with 100 year plus lease were worth £225,800. The average amount of ground rent was £60 billed annually. The lease came to a finish in 2086. Considering the 60 years remaining we approximated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including legals.