The only way is down when it comes to Market Rasen lease terms. Market Rasen flats that have a remaining term fewer than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold properties in Market Rasen with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Market Rasen can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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.
After unsuccessful correspondence with the freeholder of her first floor apartment in Market Rasen, Chantelle initiated the lease extension process just as the lease was coming close to the crucial 80-year threshold. The transaction was finalised in July 2015. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were approached by Mr and Mrs. S Phillips who, having acquired a ground floor apartment in Market Rasen in July 2000. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Market Rasen with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 invoiced per annum. The lease finished on 23 January 2088. Taking into account 63 years left we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including costs.
Mr and Mrs. Y Bennett bought a purpose-built apartment in Market Rasen in November 2004. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparative flats in Market Rasen with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced annually. The lease finished on 22 October 2099. Taking into account 74 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.