There are a variety of reasons why a valuation may be needed on a leasehold property. It could simply be that the property you are intending to purchase is a leasehold property. Alternatively, a survey is required to extend the lease or purchase the freehold.
The majority of flats, maisonettes and apartments are leasehold, i.e. the ground the building sits on is owned by someone other than the owner of the actual home, although some houses can also be leasehold properties. Most mortgage lenders are reluctant to lend on a leasehold property with less than 85 years remaining on the lease.
What happens if less that 85 years remains on the lease?
The Leasehold Reform, Housing and Urban Development Act (1993) allows flat owners to legally extend their lease by 90 years, as well as a reduction in ground rent to “a peppercorn” (zero). The Landlord and Tenant Act 1987 also applies in some situations.
When there is less that 85 years remaining, the lease will need to be extended or ownership of the property will return to the freeholder. The shorter the lease, the more impact it will have on the valuation of the property.
Extending a lease
It is always recommended that legal help is sought when extending a lease. In order to determine the value of the flat, maisonette or apartment, our highly skilled, qualified surveyors will attend the property and provide a Leasehold Valuation. We will provide a ‘worst and best’ valuation figure from the leaseholder’s point of view, as well as from the landlord’s perspective.
We will work with all parties involved and solicitors to ensure that we provide the best advice when extending the lease of a leasehold property.
We understand that when it comes to getting a survey done, time is of the essence which is why you can depend on us to provide a speedy yet professional service. For more details on our Leasehold Valuations, contact us to discuss further.