The re-sale value of a leasehold property in Lechlade depends on how long the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed ahead of the eighty year threshold. Leasehold Reform legislation entitles Lechlade qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. 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 conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Lechlade 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.
Trailing unsuccessful discussions with the landlord of her purpose-built apartment in Lechlade, Emma started the lease extension process as the eighty year mark was fast advancing. The legal work was finalised in July 2006. The freeholder’s costs were negotiated to below 650 GBP.
Mr and Mrs. R Morgan owned a ground floor apartment in Lechlade in February 1996. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Identical homes in Lechlade with an extended lease were worth £191,000. The average amount of ground rent was £65 invoiced annually. The lease elapsed on 26 September 2083. Given that there were 58 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including costs.
Ms I Moreau completed a newly refurbished apartment in Lechlade in October 2002. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable residencies in Lechlade with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 billed yearly. The lease concluded in 2094. Having 69 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.