The market value of Rawcliffe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is below than eighty years
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rawcliffe can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
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 procuring Rawcliffe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Seth, started to get near to the 80-year mark with the lease on his two bedroom flat in Rawcliffe. In buying his property two decades ago, the lease term was of little bearing. As luck would have it, it dawned on him that he would soon be paying an inflated amount for a lease extension. Seth extended the lease just under the wire last May. Seth and the freeholder subsequently agreed on sum of £5,500 . If the lease had gone lower than eighty years, the sum would have become more costly by a minimum £1,100.
Mr and Mrs. D Young bought a first floor apartment in Rawcliffe in November 1996. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable flats in Rawcliffe with an extended lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded in 2079. Given that there were 54 years remaining we approximated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 not including expenses.
In 2009 we were approached by Mr G Green who, having bought a purpose-built flat in Rawcliffe in August 1997. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable flats in Rawcliffe with an extended lease were valued around £295,000. The mid-range amount of ground rent was £45 billed yearly. The lease finished on 5 August 2099. Considering the 74 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.