The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Rush Green have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Do give careful consideration before delaying your Rush Green lease extension. Postponing that expense now simply escalates the price you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Rush Green,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rush Green valuers.
After lengthy correspondence with the landlord of her two bedroom apartment in Rush Green, Lily commenced the lease extension process as the eighty year mark was swiftly advancing. The legal work was finalised in May 2005. The freeholder’s costs were restricted to a tad over 650 pounds.
Mr and Mrs. H Watson moved into a first floor apartment in Rush Green in January 2009. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical properties in Rush Green with a long lease were worth £233,200. The mid-range ground rent payable was £60 collected monthly. The lease expired on 11 March 2087. Given that there were 61 years left we calculated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus costs.
An example of a Lease Extension matter before the tribunal for a Rush Green flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case affected 1 flat. The unexpired lease term was 57.5 years.