It’s an underpublicised certainty that a Rawcliffe residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Rawcliffe property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Rawcliffe will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Rawcliffe can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 dealing with Rawcliffe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harvey owned a 2 bedroom apartment in Rawcliffe being marketed with a lease of fraction over 59 years outstanding. Harvey informally 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 grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2012 we were e-mailed by Dr C Bell who, having bought a studio apartment in Rawcliffe in January 1999. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparative flats in Rawcliffe with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2094. Having 69 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
In 2013 we were e-mailed by Mr and Mrs. N Robinson who, having purchased a newly refurbished apartment in Rawcliffe in April 2012. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical residencies in Rawcliffe with a long lease were in the region of £216,000. The average amount of ground rent was £60 collected yearly. The lease lapsed in 2083. Given that there were 58 years unexpired we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including legals.