When it comes to domestic leasehold premises in Rainhill, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Leasehold owners in Rainhill with a lease approaching 81 years left should seriously consider extending it as soon as possible. When the lease term has less than 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Rainhill with over 100 years left on the lease are sometimes regarded as a ‘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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Rainhill,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rainhill valuers.
In the wake of 6 months of unsuccessful discussions with the freeholder of her one bedroom apartment in Rainhill, Jennifer started the lease extension process as the eighty year mark was swiftly advancing. The transaction was finalised in July 2006. The landlord’s costs were kept to an absolute minimum.
Ms M Young owned a studio apartment in Rainhill in November 1997. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable residencies in Rainhill with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease concluded in 2105. Given that there were 79 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Dr Ben Gómez completed a studio apartment in Rainhill in January 1998. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative flats in Rainhill with 100 year plus lease were valued around £193,400. The mid-range ground rent payable was £65 billed monthly. The lease finished on 1 January 2085. Given that there were 59 years unexpired we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.