The nearer a residential lease in Rawcliffe gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner rather than later. Most flat owners in Rawcliffe will meet the qualifying criteria; that being said a lawyer should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Virgin | |
| Yorkshire Building Society |
The lawyers that we work with undertake Rawcliffe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Alfie owned a high value flat in Rawcliffe on the market with a lease of just over 61 years remaining. Alfie on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Alfie to exercise his statutory right. Alfie procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
In 2009 we were contacted by Mr and Mrs. A Ward who, having purchased a ground floor apartment in Rawcliffe in March 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Rawcliffe with a long lease were valued around £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease termination date was in 2102. Given that there were 76 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.
Last year we were e-mailed by Mr Ibrahim Thompson , who acquired a ground floor flat in Rawcliffe in September 2001. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparable homes in Rawcliffe with a long lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected annually. The lease ended in 2091. Taking into account 65 years as a residual term we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of costs.