Raglan leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Raglan will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Raglan can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 procuring Raglan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the landlord of her one bedroom flat in Raglan, Lauren commenced the lease extension process as the 80 year deadline was fast coming. The transaction was concluded in August 2005. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were e-mailed by Mr and Mrs. F Ali who, having purchased a one bedroom apartment in Raglan in June 2009. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable properties in Raglan with an extended lease were worth £260,000. The average ground rent payable was £50 billed yearly. The lease elapsed on 19 January 2098. Considering the 72 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
In 2010 we were e-mailed by Mr Muhammad Bernard who, having owned a garden flat in Raglan in June 2005. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Identical homes in Raglan with 100 year plus lease were worth £256,600. The mid-range amount of ground rent was £60 invoiced annually. The lease ended in 2078. Having 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 not including expenses.