The market value of a leasehold property in Turvey is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed well before the eighty year threshold. Current legislation entitles Turvey qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Turvey with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Yorkshire 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. |
Lease extensions in Turvey can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Turvey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the freeholder of her one bedroom apartment in Turvey, Louise initiated the lease extension process just as the lease was coming close to the all-important 80-year mark. The legal work completed in January 2012. The freeholder’s fees were restricted to about 650 pounds.
Ms Imogen Brooks purchased a ground floor apartment in Turvey in September 2011. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparable premises in Turvey with 100 year plus lease were worth £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded on 10 October 2080. Given that there were 56 years left we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of expenses.
Last Christmas we were e-mailed by Mrs Louise Cooper , who moved into a one bedroom apartment in Turvey in June 1995. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Turvey with a long lease were worth £242,600. The mid-range amount of ground rent was £45 collected monthly. The lease ended in 2091. Considering the 67 years remaining we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including costs.