As the the remaining lease term of a Rise Park residential lease lessens so does its value and therefore the value of your property. If the residual term has, more than 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in Rise Park will qualify for this right; nevertheless a lawyer will be able to advise if you are eligible to extend your lease. 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 considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Rise Park,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rise Park valuers.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her basement flat in Rise Park, Ellie started the lease extension process as the 80 year threshold was rapidly coming. The legal work was concluded in April 2005. The landlord’s fees were kept to an absolute minimum.
In 2014 we were contacted by Mr and Mrs. E Flores who, having moved into a ground floor flat in Rise Park in February 2006. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical residencies in Rise Park with an extended lease were in the region of £267,600. The average ground rent payable was £65 collected monthly. The lease ran out in 2091. Given that there were 67 years remaining we estimated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Rise Park flat is Flat b 14 Kemble Road in May 2014. The Tribunal assessed the value of the premium payable for the lease extension to be £9,761 This case related to 1 flat.