The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Raunds have the legal entitlement to extend the lease for an additional 90 years under legislation. Do give careful consideration before delaying your Raunds lease extension. Putting off that expense now simply increases the price you will ultimately be required to pay to extend the lease.
Leasehold properties in Raunds with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Raunds,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Raunds valuers.
After unsuccessful correspondence with the freeholder of her garden flat in Raunds, Alexandra commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was concluded in March 2010. The freeholder’s charges were negotiated to approximately 500 GBP.
In 2012 we were contacted by Mr and Mrs. J Alexander who, having bought a one bedroom flat in Raunds in April 2009. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical homes in Raunds with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease concluded in 2095. Considering the 70 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
Last Winter we were e-mailed by Dr J Roberts , who acquired a basement flat in Raunds in May 1997. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable homes in Raunds with a long lease were valued around £223,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease terminated on 15 October 2084. Considering the 59 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus legals.