With a residential leasehold premises in Rawdon, you are actually buying a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years left. Anyone in Rawdon with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has less than 80 years remaining, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Rawdon 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 conveyancer we work with provide it.
In recent months Oscar, came precariously near to the eighty-year threshold with the lease on his garden apartment in Rawdon. In buying his flat 19 years previously, the unexpired term was of little importance. by good luck, he recognised he needed to take action soon on Extending the lease. Oscar extended the lease at the eleventh hour in January. Oscar and the landlord subsequently settled on a premium of £6,000 . If the lease had dipped to less than eighty years, the figure would have become more costly by a minimum £1,100.
Mr and Mrs. Y Jones bought a first floor flat in Rawdon in May 2009. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative homes in Rawdon with 100 year plus lease were in the region of £193,400. The average amount of ground rent was £65 collected annually. The lease lapsed on 3 November 2085. Given that there were 59 years remaining we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including professional charges.
Last Christmas we were e-mailed by Mr and Mrs. S Taylor , who moved into a newly refurbished apartment in Rawdon in October 2008. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar flats in Rawdon with 100 year plus lease were worth £255,000. The average ground rent payable was £50 invoiced annually. The lease terminated on 28 April 2096. Taking into account 70 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.