Unfortunately that a Raglan residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Raglan property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Most leasehold owners in Raglan will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Raglan with more than one hundred years outstanding 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 estate charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Raglan leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Archie was the the leasehold proprietor of a conversion apartment in Raglan on the market with a lease of a few days over 72 years unexpired. Archie informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Archie to exercise his statutory right. Archie procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Autumn we were e-mailed by Dr T Pérez , who purchased a basement flat in Raglan in July 2002. The question was if we could approximate the premium could be to extend the lease by an additional years. Comparative premises in Raglan with a long lease were in the region of £275,000. The average amount of ground rent was £55 collected per annum. The lease came to a finish in 2102. Taking into account 77 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.
Last Christmas we were approach by Dr Freddie Brooks , who moved into a garden flat in Raglan in October 1999. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar homes in Raglan with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 collected per annum. The lease lapsed in 2082. Considering the 57 years outstanding we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including legals.