Unfortunately that a Raunds residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Raunds property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. The majority of flat owners in Raunds will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society | |
| Virgin |
The lawyers that we work with procure Raunds 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.
14 months ago James, came seriously near to the eighty-year threshold with the lease on his one bedroom flat in Raunds. Having purchased his property two decades ago, the length of the lease was of minimal concern. Fortunately, he recognised he would imminently be paying an escalated premium for Extending the lease. James extended the lease just ahead of time in August. James and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If the lease had dropped below 80 years, the price would have gone up by at least £1,075.
In 2012 we were e-mailed by Mrs C Khan who, having owned a garden apartment in Raunds in April 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable residencies in Raunds with a long lease were worth £257,800. The mid-range ground rent payable was £65 collected quarterly. The lease lapsed in 2091. Given that there were 65 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including expenses.
In 2010 we were phoned by Mrs M Howard who, having moved into a one bedroom flat in Raunds in February 2006. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable homes in Raunds with 100 year plus lease were valued around £191,400. The average amount of ground rent was £55 collected quarterly. The lease end date was in 2080. Taking into account 54 years as a residual term we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 not including fees.