The value of Rowen leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Rowen,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rowen valuers.
Joseph was the the leasehold proprietor of a high value apartment in Rowen on the market with a lease of a few days over 61 years outstanding. Joseph 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 landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Joseph to exercise his statutory right. Joseph procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were phoned by Mr Thomas Rogers who, having completed a basement apartment in Rowen in November 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparative premises in Rowen with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 billed yearly. The lease elapsed in 2093. Considering the 67 years remaining we approximated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 plus expenses.
Mrs Jessica Adams purchased a one bedroom flat in Rowen in April 2006. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical residencies in Rowen with 100 year plus lease were worth £206,200. The average ground rent payable was £60 invoiced every twelve months. The lease finished in 2082. Given that there were 56 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.