The re-sale value of a leasehold property in Rawcliffe depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded in advance of the eighty year threshold. Current legislation enables Rawcliffe qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
|Bank of Scotland||Minimum 70 years from the date of the mortgage.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
The conveyancing solicitors that we work with undertake Rawcliffe 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 conveyancing solicitor we work with provide it.
Aarav was the the leasehold owner of a studio flat in Rawcliffe being sold with a lease of a few days over fifty eight years outstanding. Aarav informally contacted his landlord a well known London-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 at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aarav to invoke his statutory right. Aarav procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. R Gray purchased a one bedroom apartment in Rawcliffe in August 2005. The dilemma was if we could estimate the price would be for a 90 year lease extension. Similar premises in Rawcliffe with a long lease were worth £250,400. The average amount of ground rent was £65 billed every twelve months. The lease came to a finish on 3 March 2085. Given that there were 64 years left we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including expenses.
Last Christmas we were phoned by Dr Ethan García , who completed a first floor flat in Rawcliffe in November 1998. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative flats in Rawcliffe with a long lease were valued about £189,000. The average ground rent payable was £55 billed monthly. The lease expired on 4 March 2074. Given that there were 53 years left we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of costs.