When it comes to domestic leasehold premises in Rowen, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Residents in Rowen with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has less than eighty years remaining, under the current statute the freeholder is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service will provide you increased control over the value of your Rowen leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy discussions with the freeholder of her leasehold apartment in Rowen, Sophie started the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was finalised in May 2010. The freeholder’s fees were negotiated to slightly above 500 pounds.
In 2010 we were e-mailed by Dr John André who, having purchased a first floor apartment in Rowen in February 1997. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Rowen with an extended lease were in the region of £206,200. The average ground rent payable was £60 billed every twelve months. The lease expired in 2081. Given that there were 56 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.
In 2011 we were called by Mr Aiden White who, having owned a ground floor apartment in Rowen in November 2011. We are asked if we could approximate the price could be to extend the lease by ninety years. Identical flats in Rowen with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed on 23 November 2101. Taking into account 76 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.