With a domestic leasehold premises in Rush Green, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Leasehold owners in Rush Green with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has under 80 years outstanding, under the relevant Act the freeholder can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 obtain guidance from a conveyancer and valuer 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 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.
In recent months Ali, came seriously near to the eighty-year threshold with the lease on his garden apartment in Rush Green. Having purchased his flat twenty years ago, the unexpired term was of no bearing. As luck would have it, he realised he needed to take action soon on Extending the lease. Ali arranged for a lease extension at the eleventh hour last April. Ali and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If he not met the deadline, the premium would have increased by at least £1,050.
Last Autumn we were called by Dr Luca Bennett , who completed a one bedroom apartment in Rush Green in June 1998. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Rush Green with a long lease were worth £300,000. The average ground rent payable was £50 collected yearly. The lease ended on 16 June 2100. Considering the 75 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
An example of a Lease Extension decision for a Rush Green residence 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 term was 57.5 years.