The market value of Rowen leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is less than eighty years
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Halifax | |
| National Westminster Bank | |
| Royal Bank of Scotland |
Retaining our service gives you enhanced control over the value of your Rowen leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Finley, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Rowen. Having purchased his home twenty years previously, the lease term was of little concern. by good luck, it dawned on him that he would imminently be paying way over the odds for a lease extension. Finley extended the lease just ahead of time last September. Finley and the freeholder via the managing agents in the end agreed on an amount of £5,000 . If the lease had gone below eighty years, the premium would have become more exhorbitant by at least £850.
Last year we were approach by Dr U Ricardo , who took over the lease of a studio flat in Rowen in August 2010. The question was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparative flats in Rowen with a long lease were valued around £210,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ran out on 22 June 2105. Having 79 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
In 2009 we were approached by Ms P Howard who, having purchased a recently refurbished flat in Rowen in August 2004. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar properties in Rowen with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £45 billed monthly. The lease lapsed in 2095. Taking into account 69 years unexpired we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.