The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Rowen can extend the lease for an additional ninety years under legislation. Do think carefully before delaying your Rowen lease extension. Postponing that expense today simply increases the price you will ultimately have to pay to extend the lease.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Rowen leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Riley was the the leasehold proprietor of a high value apartment in Rowen on the market with a lease of fraction over 72 years unexpired. Riley on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Riley to exercise his statutory right. Riley procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2012 we were called by Mr and Mrs. P Flores who, having moved into a first floor apartment in Rowen in September 2002. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable properties in Rowen with an extended lease were in the region of £213,600. The mid-range ground rent payable was £60 collected every twelve months. The lease ended on 14 September 2082. Having 57 years left we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.
Mr and Mrs. E Evans bought a basement flat in Rowen in April 2000. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative residencies in Rowen with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 billed per annum. The lease ran out in 2102. Given that there were 77 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.