With a domestic leasehold property in New Rossington, you are actually buying a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years remaining. Leasehold owners in New Rossington with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has under eighty years outstanding, under the current statute the freeholder can calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in New Rossington,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Rossington valuers.
In 2014 Alex, started to get near to the eighty-year mark with the lease on his first floor flat in New Rossington. Having purchased his flat 18 years ago, the lease term was of no concern. Luckily, he became aware that he needed to take steps soon on Extending the lease. Alex was able to extend his lease just in the nick of time in March. Alex and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had slipped lower than eighty years, the price would have gone up by a minimum £1,100.
Dr Y Harris bought a studio apartment in New Rossington in January 2001. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar residencies in New Rossington with a long lease were valued around £191,400. The average ground rent payable was £55 billed annually. The lease ran out in 2080. Having 54 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of professional charges.
Last Christmas we were called by Ms E Moreau , who took over the lease of a one bedroom flat in New Rossington in November 2011. The question was if we could approximate the price would likely be to extend the lease by an additional years. Comparable homes in New Rossington with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 invoiced every twelve months. The lease terminated on 13 October 2100. Taking into account 74 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.