The market value of a leasehold property in Rowen is impacted by how long the lease has left to run. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised ahead of the eighty year cut off point. Statute enables Rowen qualifying lessees to an additional term of ninety years in addition to the existing term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately 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 decades to come.
Lender | Requirement |
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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. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rowen can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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.
Connor was the the leasehold owner of a studio apartment in Rowen on the market with a lease of a few days over sixty years left. Connor informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Connor to exercise his statutory right. Connor procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Mrs K Rose bought a one bedroom flat in Rowen in July 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparable flats in Rowen with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 collected yearly. The lease end date was on 20 November 2096. Considering the 72 years unexpired we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including professional charges.
Mr and Mrs. G Martinez completed a purpose-built apartment in Rowen in November 2012. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative residencies in Rowen with 100 year plus lease were in the region of £233,200. The average amount of ground rent was £60 billed quarterly. The lease concluded on 19 April 2085. Considering the 61 years as a residual term we estimated the premium to the landlord to extend the lease to be between £22,800 and £26,400 not including costs.