Rowen leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Rowen will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Rowen with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service gives you increased control over the value of your Rowen leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Nathaniel was the the leasehold owner of a conversion flat in Rowen being marketed with a lease of a little over fifty eight years left. Nathaniel on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Mr and Mrs. V King bought a basement apartment in Rowen in June 2001. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparative properties in Rowen with 100 year plus lease were worth £200,000. The average ground rent payable was £50 collected yearly. The lease expired on 2 June 2102. Given that there were 77 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
Last year we were approach by Mr Omar Richardson , who bought a first floor apartment in Rowen in November 2009. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Rowen with a long lease were worth £265,200. The mid-range ground rent payable was £65 collected yearly. The lease terminated on 25 September 2091. Taking into account 66 years left we calculated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 not including professional charges.