With a residential leasehold property in Rawdon, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than 80 years remaining. Residents in Rawdon with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has less than 80 years outstanding, under the current statute the freeholder can calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Rawdon with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Rawdon leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Nathaniel, started to get close to the eighty-year threshold with the lease on his first floor apartment in Rawdon. Having purchased his flat two decades ago, the lease term was of little significance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Nathaniel extended the lease just under the wire in May. Nathaniel and the freeholder via the managing agents ultimately agreed on a premium of £5,000 . If the lease had dropped to less than 80 years, the price would have escalated by a minimum £925.
In 2009 we were phoned by Dr E Martin who, having was assigned a lease of a recently refurbished apartment in Rawdon in October 1997. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Rawdon with an extended lease were valued about £256,600. The average amount of ground rent was £60 invoiced quarterly. The lease concluded on 23 September 2077. Given that there were 52 years as a residual term we approximated the premium to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of expenses.
Last month we were contacted by Ms N Lefebvre , who was assigned a lease of a studio flat in Rawdon in March 2004. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical flats in Rawdon with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed monthly. The lease ran out on 22 March 2088. Having 63 years outstanding we estimated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including costs.