Unfortunately that a Rowen residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Rowen property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Rowen will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | 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 |
Lease extensions in Rowen can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Rowen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer George, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Rowen. In buying his property two decades ago, the length of the lease was of no importance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. George was able to extend his lease at the eleventh hour in September. George and the freeholder via the managing agents subsequently settled on an amount of £6,000 . If the lease had gone to less than eighty years, the figure would have gone up by a minimum £925.
Mr and Mrs. H Rivera was assigned a lease of a first floor apartment in Rowen in August 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Comparable premises in Rowen with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease finished in 2097. Taking into account 72 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including legals.
In 2012 we were called by Ms W Martínez who, having completed a purpose-built flat in Rowen in November 1997. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar homes in Rowen with 100 year plus lease were valued about £233,200. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished in 2086. Considering the 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.