The market value of a leasehold property in Rush Green depends on how long the lease has left to run. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded in advance of the eighty year cut off point. Leasehold Reform legislation entitles Rush Green qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Rush Green with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Rush Green leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the freeholder of her first floor apartment in Rush Green, Lauren started the lease extension process as the eighty year mark was fast coming. The transaction was finalised in May 2005. The landlord’s costs were kept to an absolute minimum.
Last Summer we were phoned by Mr T Edwards , who acquired a basement flat in Rush Green in August 2009. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparable properties in Rush Green with an extended lease were in the region of £205,000. The average ground rent payable was £50 collected every twelve months. The lease end date was on 18 June 2103. Considering the 78 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.
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 affected 1 flat. The unexpired term was 57.5 years.