On the balance of probabilities if you own a flat in Rumney you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Rumney lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last Winter Felix, started to get near to the 80-year mark with the lease on his leasehold flat in Rumney. Having purchased his property two decades ago, the unexpired term was of no interest. Luckily, he recognised he would soon be paying an escalated premium for Extending the lease. Felix extended the lease at the eleventh hour last August. Felix and the freeholder via the management company in the end settled on an amount of £5,500 . If he not met the deadline, the figure would have become more exhorbitant by at least £850.
In 2009 we were e-mailed by Dr Tyler Turner who, having owned a one bedroom apartment in Rumney in September 1997. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable residencies in Rumney with an extended lease were in the region of £275,000. The average amount of ground rent was £45 billed yearly. The lease ended on 25 April 2094. Given that there were 69 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
In 2013 we were e-mailed by Mr Ben Martinez who, having bought a studio apartment in Rumney in October 2003. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable flats in Rumney with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 invoiced yearly. The lease concluded in 2083. Having 58 years outstanding we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.