This is the most frequent enquiry we receive for valuations from both freeholders and lessees. The leasehold system of ownership of residential flats in this country has meant that owners of flats hold their property for a certain period of years. Most commonly flats were originally sold from new on 99 year leases with a modest ground rent. Over the years the original term has run down which has affected quite significantly both the value and saleability of the leaseholders interest in the property. Since most prospective purchasers require bank or building society mortgages in order to purchase the length of the lease has a significant bearing. This is due to the fact that all lenders have a specific policy when lending on leasehold property and require a certain term of years left unexpired after the period of the loan. The actual length of the lease that lenders are prepared to accept as suitable mortgage security varies from lender to lender. However, generally most lenders will not accept flats held on leases with less than 55 years remaining on the lease and some even require no less than 75 years unexpired.
The valuation required for a lease extension is specialised and is constantly affected by both changes in market conditions and changes in the law as affected by case precedents determining valuation principles and practices.
We offer a full valuation and negotiation service concerning all aspects of the lease extension process to both leaseholders and freeholders.