The value of Rainhill leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is less than 80 years
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Rainhill can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Rainhill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Omar, started to get close to the 80-year mark with the lease on his garden flat in Rainhill. Having bought his property two decades ago, the length of the lease was of no concern. by good luck, he recognised he would soon be paying an escalated premium for a lease extension. Omar arranged for a lease extension at the eleventh hour in March. Omar and the freeholder eventually agreed on the final figure of £6,000 . If the lease had descended lower than 80 years, the figure would have increased by at least £1,150.
Last year we were e-mailed by Mrs Kelsey François , who moved into a purpose-built flat in Rainhill in January 2010. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparable properties in Rainhill with a long lease were in the region of £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease expiry date was in 2095. Having 70 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 exclusive of fees.
In 2011 we were phoned by Mr O Moreau who, having owned a purpose-built flat in Rainhill in July 2001. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative flats in Rainhill with 100 year plus lease were valued around £246,800. The average amount of ground rent was £60 collected every twelve months. The lease ran out in 2075. Given that there were 50 years remaining we estimated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 plus expenses.