With a long leasehold premises in Rawdon, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Leasehold owners in Rawdon with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once a lease has below 80 years remaining, under the relevant Act the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Rawdon can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Rawdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac owned a studio flat in Rawdon on the market with a lease of fraction over 72 years remaining. Isaac on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert advice and secured satisfactory deal without going to tribunal and readily saleable.
Mr and Mrs. G Bennett completed a one bedroom flat in Rawdon in November 2008. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Rawdon with a long lease were valued around £255,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out on 16 July 2097. Considering the 71 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Mr and Mrs. G Ali completed a purpose-built apartment in Rawdon in May 2006. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Identical residencies in Rawdon with a long lease were valued around £254,200. The average ground rent payable was £60 collected monthly. The lease concluded on 13 June 2077. Taking into account 51 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 not including legals.