The value of Rawcliffe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is below than eighty years
Leasehold properties in Rawcliffe with more than 100 years unexpired 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Rawcliffe,the lease extension lawyers 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 Rawcliffe valuers.
Alex was the the leasehold owner of a 2 bedroom flat in Rawcliffe being sold with a lease of a few days over 72 years left. Alex informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Alex to invoke his statutory right. Alex obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last year we were called by Dr Natalie Wood , who bought a studio flat in Rawcliffe in October 2009. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Rawcliffe with an extended lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced annually. The lease expired on 8 January 2083. Taking into account 58 years outstanding we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.
Last year we were e-mailed by Mr Jude Martínez , who acquired a basement flat in Rawcliffe in October 2002. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Identical properties in Rawcliffe with an extended lease were valued around £200,000. The average amount of ground rent was £50 billed per annum. The lease expired in 2103. Considering the 78 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.