Rowen leases on residential properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is under eighty 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 your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Rowen will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are also strict deadlines and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold properties in Rowen with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Rowen valuers.
Subsequent to lengthy correspondence with the freeholder of her first floor flat in Rowen, Erin commenced the lease extension process as the 80 year mark was fast nearing. The lease extension completed in April 2010. The freeholder’s charges were restricted to under 650 GBP.
Mr and Mrs. B François completed a ground floor flat in Rowen in March 2008. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable homes in Rowen with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease elapsed on 5 May 2094. Having 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.
In 2013 we were approached by Dr M Watson who, having acquired a garden apartment in Rowen in September 1998. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Comparable homes in Rowen with 100 year plus lease were valued about £216,000. The average amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 21 February 2083. Taking into account 58 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.