The market value of a leasehold property in Caerwys depends on how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded ahead of the 80 year cut off point. Current legislation enables Caerwys qualifying lessees to a 90 year extension added to their unexpired 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 determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Caerwys with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society |
Regardless of whether you are a tenant or a freeholder in Caerwys,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Caerwys valuers.
Noah was the the leasehold proprietor of a high value flat in Caerwys being marketed with a lease of just over sixty years outstanding. Noah informally contacted his freeholder a well known Bristol-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 on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Noah to exercise his statutory right. Noah procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
In 2013 we were called by Mrs C White who, having bought a first floor apartment in Caerwys in September 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Comparable premises in Caerwys with 100 year plus lease were valued around £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired on 27 January 2104. Considering the 78 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
In 2012 we were e-mailed by Mr B Dupont who, having bought a garden apartment in Caerwys in August 2003. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical flats in Caerwys with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 billed annually. The lease elapsed on 22 April 2093. Having 67 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of legals.