When it comes to domestic leasehold property in Rawcliffe, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years left. Leasehold owners in Rawcliffe with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years remaining, under the current legislation the landlord can calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Rawcliffe with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Rawcliffe,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rawcliffe valuers.
Henry owned a 2 bedroom flat in Rawcliffe on the market with a lease of just over 72 years outstanding. Henry on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Henry to exercise his statutory right. Henry obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2010 we were contacted by Dr Kayleigh Bailey who, having acquired a purpose-built apartment in Rawcliffe in June 2008. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative homes in Rawcliffe with an extended lease were valued around £225,800. The mid-range ground rent payable was £60 invoiced monthly. The lease terminated in 2086. Having 60 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including fees.
In 2014 we were e-mailed by Mr and Mrs. N Dupont who, having bought a one bedroom flat in Rawcliffe in June 1997. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative properties in Rawcliffe with a long lease were worth £210,000. The average ground rent payable was £50 collected annually. The lease ran out in 2106. Taking into account 80 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.