With a domestic leasehold premises in Rush Green, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Anyone in Rush Green with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When a lease has below 80 years remaining, under the current Act the freeholder can calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Rush Green with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The lawyers that we work with handle Rush Green 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 conveyancing solicitor we work with provide it.
Last October Hugo, came seriously close to the eighty-year mark with the lease on his purpose- built apartment in Rush Green. In buying his home two decades ago, the unexpired term was of no significance. Thankfully, he realised he would soon be paying an escalated premium for Extending the lease. Hugo extended the lease at the eleventh hour last July. Hugo and the freeholder subsequently settled on an amount of £6,000 . If he had missed the deadline, the amount would have become more costly by at least £950.
In 2010 we were contacted by Mr and Mrs. W Petit who, having took over the lease of a newly refurbished apartment in Rush Green in March 2005. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable residencies in Rush Green with a long lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease expiry date was in 2085. Having 60 years remaining we estimated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 plus legals.
An example of a Lease Extension case 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 was in relation to 1 flat. The unexpired lease term was 57.5 years.