Market Rasen leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Market Rasen residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Market Rasen you really ought to check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Market Rasen leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Market Rasen with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors that we work with procure Market Rasen lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Freddie owned a studio apartment in Market Rasen on the market with a lease of just over 61 years remaining. Freddie informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Freddie to invoke his statutory right. Freddie procured expert advice and secured an acceptable deal informally and sell the property.
In 2011 we were contacted by Mr and Mrs. H Adams who, having owned a basement flat in Market Rasen in September 2010. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical premises in Market Rasen with an extended lease were valued about £186,000. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish on 6 March 2084. Taking into account 58 years left we approximated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 exclusive of costs.
Dr S Girard was assigned a lease of a studio apartment in Market Rasen in April 2010. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar residencies in Market Rasen with 100 year plus lease were worth £250,000. The average ground rent payable was £50 invoiced yearly. The lease terminated on 16 July 2095. Taking into account 69 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.