Rush Green leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Rush Green enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Rush Green you really ought to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 get guidance from a lawyer 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 a wealth of experience dealing with 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.
Last October Toby, came critically close to the 80-year threshold with the lease on his first floor flat in Rush Green. In buying his flat 18 years previously, the lease term was of minimal bearing. Luckily, he became aware that he would soon be paying an escalated premium for Extending the lease. Toby was able to extend his lease just ahead of time last May. Toby and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If the lease had gone lower than eighty years, the sum would have become more exhorbitant by at least £1,050.
Mr John Díaz owned a studio flat in Rush Green in June 2004. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparable homes in Rush Green with an extended lease were valued about £208,600. The mid-range amount of ground rent was £60 collected annually. The lease ran out in 2083. Having 57 years unexpired we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including professional charges.
An example of a Lease Extension case for a Rush Green premises 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 remaining number of years on the lease was 57.5 years.