The market value of a leasehold property in Iver depends on how long the lease has remaining. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded well before the 80 year threshold. Leasehold Reform legislation enables Iver qualifying lessees to an additional term of 90 years over and above the unexpired term, at a peppercorn rent (no ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Iver 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 conveyancing solicitor we work with provide it.
Connor was the the leasehold proprietor of a 2 bedroom apartment in Iver on the market with a lease of just over 59 years remaining. Connor on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Connor to invoke his statutory right. Connor procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Dr B Watson took over the lease of a garden apartment in Iver in June 2007. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Iver with a long lease were in the region of £245,000. The mid-range amount of ground rent was £45 billed monthly. The lease elapsed on 6 September 2094. Considering the 68 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
An example of a Freehold Enfranchisement case for a Iver premises is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The number of years remaining on the existing lease(s) was 69 years.