Leasehold Properties

Question 1

What information is required for valuing a leasehold property?

Answer 1

. The unexpired lease term
. Ground rent
This information should be easily sourced by the of inspection from either the vendor or selling agent.

. Verification is a matter for the lenders solicitor

Where no information is supplied assumptions can be made such as:

• the unexpired lease term being assumed to be 85 years
• the cost of repairs and maintenance to the building and grounds are shared equitably between flats and maisonettes

Question 2

Typically how long are building leases for the land?

Answer 2

99 or some occasionally found to be 999

The lessee is entitled to a 50 year lease extension or may be able to purchase the freehold reversion