Chances are that if you own a flat in Rush Green you actually own a long leasehold interest over your property
Leasehold premises in Rush Green with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rush Green can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Rush Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Andrew, started to get close to the 80-year threshold with the lease on his ground floor apartment in Rush Green. In buying his home twenty years previously, the unexpired term was of no significance. Luckily, he became aware that he needed to take steps soon on a lease extension. Andrew was able to extend his lease just in the nick of time in June. Andrew and the freeholder ultimately settled on an amount of £5,000 . If he failed to meet the deadline, the sum would have gone up by at least £1,075.
Last Summer we were contacted by Dr R Peterson , who was assigned a lease of a newly refurbished apartment in Rush Green in April 2004. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative flats in Rush Green with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed per annum. The lease finished in 2095. Taking into account 69 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
An example of a Lease Extension decision for a Rush Green property 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 term as at the valuation date was 57.5 years.