The re-sale value of a leasehold property in Rawcliffe depends on how long the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised in advance of the eighty year threshold. Statute enables Rawcliffe qualifying lessees to an additional term of ninety years over and above the unexpired term, at a nominal rent (no ground rent). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
Lease extensions in Rawcliffe can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor 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 Rawcliffe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Max was the the leasehold owner of a studio flat in Rawcliffe being sold with a lease of a little over sixty years outstanding. Max informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Max to exercise his statutory right. Max obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2011 we were e-mailed by Dr Milo Allen who, having acquired a studio flat in Rawcliffe in June 2006. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable residencies in Rawcliffe with 100 year plus lease were worth £184,000. The average amount of ground rent was £55 billed every twelve months. The lease expired in 2078. Considering the 53 years remaining we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.
Last August we were e-mailed by Dr M Reed , who acquired a purpose-built apartment in Rawcliffe in October 2008. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparable properties in Rawcliffe with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 invoiced every twelve months. The lease expiry date was in 2098. Taking into account 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.