The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Rainford may extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Rainford lease extension. Shelving that expense today simply increases the price you will ultimately be required to pay to extend the lease.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| 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 |
The lawyers that we work with procure Rainford 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 conveyancer we work with provide it.
Last Christmas Jamie, started to get close to the 80-year threshold with the lease on his first floor apartment in Rainford. In buying his home twenty years ago, the length of the lease was of no significance. Thankfully, he realised he would soon be paying way over the odds for Extending the lease. Jamie extended the lease at the eleventh hour in August. Jamie and the freeholder in the end agreed on sum of £5,000 . If the lease had dipped to less than 80 years, the premium would have gone up by a minimum £875.
Mr and Mrs. M Leroy moved into a one bedroom flat in Rainford in February 2008. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical residencies in Rainford with a long lease were valued about £166,400. The mid-range ground rent payable was £60 collected annually. The lease terminated in 2079. Taking into account 54 years remaining we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of legals.
Ms D Davis purchased a garden apartment in Rainford in October 2012. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Rainford with an extended lease were worth £227,800. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish in 2090. Considering the 65 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.