Rowen leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Flat owners in Rowen will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as 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. |
| 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; |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Lewis, came seriously near to the eighty-year mark with the lease on his ground floor apartment in Rowen. Having bought his home 19 years ago, the unexpired term was of little concern. by good luck, he recognised he would imminently be paying an escalated premium for a lease extension. Lewis arranged for a lease extension at the eleventh hour in May. Lewis and the freeholder via the managing agents eventually agreed on sum of £6,000 . If the lease had gone lower than 80 years, the amount would have gone up by at least £950.
In 2010 we were contacted by Mr and Mrs. F Leroy who, having completed a garden apartment in Rowen in April 2001. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative flats in Rowen with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease expired in 2098. Given that there were 73 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. F Johnson was assigned a lease of a ground floor flat in Rowen in July 2003. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparable premises in Rowen with an extended lease were worth £240,600. The average ground rent payable was £65 billed monthly. The lease elapsed on 5 July 2087. Given that there were 62 years remaining we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of legals.