When it comes to long leasehold property in New Rossington, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Anyone in New Rossington with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has less than eighty years outstanding, under the relevant legislation the freeholder can calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | 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. |
| 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. |
The conveyancers that we work with undertake New Rossington 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 lawyer we work with provide it.
Jack owned a high value flat in New Rossington on the market with a lease of fraction over 72 years unexpired. Jack informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jack to invoke his statutory right. Jack procured expert advice and secured satisfactory deal without going to tribunal and sell the property.
Mr D Howard bought a recently refurbished apartment in New Rossington in September 2005. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Comparative homes in New Rossington with a long lease were valued around £295,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ended in 2100. Considering the 75 years remaining we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Dr D Bernard acquired a first floor apartment in New Rossington in October 2006. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in New Rossington with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed in 2089. Considering the 64 years outstanding we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus costs.