It’s an underpublicised certainty that a Rush Green residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Rush Green property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term slips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Rush Green will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Rush Green with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rush Green can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
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.
Trailing lengthy discussions with the freeholder of her garden apartment in Rush Green, Jennifer started the lease extension process as the eighty year mark was fast approaching. The legal work was concluded in November 2005. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were approach by Mr and Mrs. D González , who moved into a studio flat in Rush Green in February 2000. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Rush Green with an extended lease were in the region of £223,400. The average amount of ground rent was £60 billed yearly. The lease end date was in 2084. Given that there were 59 years outstanding we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including legals.
An example of a Lease Extension matter before the tribunal 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 residue of the current lease was 57.5 years.