Raglan leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Raglan enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Raglan you must see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Raglan leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Nationwide Building Society |
Lease extensions in Raglan can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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 dealing with Raglan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake owned a conversion flat in Raglan being sold with a lease of just over 59 years outstanding. Jake on an informal basis spoke with his landlord 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 subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jake to exercise his statutory right. Jake obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last Autumn we were contacted by Dr L Brooks , who acquired a ground floor apartment in Raglan in September 2001. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Raglan with an extended lease were valued about £237,600. The mid-range amount of ground rent was £45 billed quarterly. The lease lapsed in 2093. Taking into account 67 years remaining we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of costs.
Ms M Bonnet was assigned a lease of a studio flat in Raglan in May 2012. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Identical flats in Raglan with an extended lease were worth £280,000. The average ground rent payable was £55 collected yearly. The lease terminated in 2104. Given that there were 78 years unexpired we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.