Unfortunately that a Rowen residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Rowen property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Rowen will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Rowen can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
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 dealing with Rowen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the freeholder of her first floor apartment in Rowen, Alexandra initiated the lease extension process as the 80 year mark was quickly coming. The legal work was concluded in February 2013. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Mr and Mrs. A Nguyen who, having was assigned a lease of a first floor apartment in Rowen in April 1997. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable flats in Rowen with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease finished in 2100. Given that there were 74 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
In 2014 we were e-mailed by Mr and Mrs. M Cox who, having was assigned a lease of a studio apartment in Rowen in July 2010. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparable homes in Rowen with 100 year plus lease were in the region of £248,000. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 5 November 2089. Considering the 63 years remaining we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus costs.