The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Rawdon have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do think carefully before delaying your Rawdon lease extension. Shelving that expense today simply increases the price you will eventually be required to pay to extend the lease.
Leasehold properties in Rawdon with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Rawdon,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rawdon valuers.
Trailing lengthy correspondence with the landlord of her one bedroom flat in Rawdon, Abbie commenced the lease extension process just as her lease was coming close to the critical eighty-year deadline. The legal work was finalised in July 2008. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were e-mailed by Mr L Torres who, having owned a one bedroom flat in Rawdon in April 1998. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Identical homes in Rawdon with an extended lease were worth £250,000. The average amount of ground rent was £50 invoiced yearly. The lease finished in 2095. Having 69 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
Last Summer we were phoned by Dr Alex Bernard , who moved into a first floor flat in Rawdon in October 2011. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Identical flats in Rawdon with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 4 August 2106. Considering the 80 years remaining we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.