Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Rainford. Clearly, the period of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Rainford have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give careful deliberation before delaying your Rainford lease extension. Holding off the cost now only increases the price you will eventually incur to extend your lease
Leasehold premises in Rainford with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Rainford can be a difficult process. We recommend you obtain guidance from a lawyer 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 Rainford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Tommy, came critically near to the eighty-year threshold with the lease on his studio flat in Rainford. Having purchased his property two decades ago, the unexpired term was of little concern. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Tommy extended the lease just ahead of time in May. Tommy and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,125.
In 2009 we were e-mailed by Dr F Morgan who, having was assigned a lease of a newly refurbished flat in Rainford in July 1998. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar residencies in Rainford with 100 year plus lease were in the region of £235,200. The average ground rent payable was £45 invoiced per annum. The lease expired in 2091. Having 66 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
In 2012 we were contacted by Mr and Mrs. L Ramírez who, having completed a one bedroom apartment in Rainford in August 2010. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar premises in Rainford with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 collected annually. The lease terminated in 2102. Having 77 years remaining we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.