The value of Rawcliffe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than 80 years
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same 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 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 lawyer we work with provide it.
Jasper was the the leasehold owner of a 2 bedroom flat in Rawcliffe being sold with a lease of a little over 61 years outstanding. Jasper on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last Summer we were contacted by Ms D Bennett , who owned a garden flat in Rawcliffe in August 1997. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Similar flats in Rawcliffe with an extended lease were worth £218,400. The mid-range ground rent payable was £60 collected quarterly. The lease ended in 2085. Having 59 years remaining we approximated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.
Mr and Mrs. U Lambert purchased a purpose-built apartment in Rawcliffe in January 2009. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Identical flats in Rawcliffe with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease end date was in 2105. Given that there were 79 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.