The only way is down when it comes to New Rossington lease terms. New Rossington properties that have a remaining term shorter than eighty years will reduce in value at a rapid rate, and the cost of extending your lease will go up.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
The conveyancing solicitors that we work with procure 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.
In the wake of eight months of lengthy negotiations with the freeholder of her garden flat in New Rossington, Alice started the lease extension process just as her lease was nearing the crucial eighty-year mark. The transaction completed in November 2014. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were approached by Mr and Mrs. P Lewis who, having owned a ground floor flat in New Rossington in October 2005. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparative premises in New Rossington with an extended lease were worth £206,200. The mid-range ground rent payable was £55 collected yearly. The lease expired in 2082. Having 56 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.
Mrs I Brown took over the lease of a purpose-built flat in New Rossington in March 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparative premises in New Rossington with an extended lease were worth £300,000. The average amount of ground rent was £50 collected monthly. The lease expired in 2102. Taking into account 76 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.