Unfortunately that a Rawcliffe residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Rawcliffe property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. The majority of flat owners in Rawcliffe will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Leeds Building Society | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
Retaining our service will provide you better control over the value of your Rawcliffe leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Oscar, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Rawcliffe. Having bought his flat two decades ago, the unexpired term was of minimal importance. Fortunately, he became aware that he would soon be paying an escalated premium for a lease extension. Oscar arranged for a lease extension just under the wire in September. Oscar and the freeholder ultimately agreed on sum of £5,000 . If the lease had slid below 80 years, the figure would have gone up by at least £850.
Last year we were e-mailed by Mrs S Nguyen , who took over the lease of a ground floor apartment in Rawcliffe in March 1999. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparative premises in Rawcliffe with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed on 12 February 2098. Having 72 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.
In 2009 we were e-mailed by Dr Aaron Rodríguez who, having owned a newly refurbished flat in Rawcliffe in May 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparable flats in Rawcliffe with an extended lease were valued around £233,200. The average amount of ground rent was £60 collected monthly. The lease lapsed in 2087. Considering the 61 years outstanding we calculated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of costs.