For anyone whose Market Rasen flat is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| 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. |
Lease extensions in Market Rasen can be a difficult process. We recommend you obtain 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 dealing with Market Rasen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Theo owned a high value flat in Market Rasen being marketed with a lease of just over sixty years remaining. Theo informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Theo to exercise his statutory right. Theo procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Mrs Ellie Dupont who, having bought a one bedroom flat in Market Rasen in May 2002. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable premises in Market Rasen with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 collected per annum. The lease expired in 2103. Considering the 77 years remaining we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
In 2012 we were called by Mr and Mrs. F López who, having bought a garden flat in Market Rasen in June 2012. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Comparable properties in Market Rasen with 100 year plus lease were valued around £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease elapsed in 2083. Given that there were 57 years as a residual term we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.