Rawdon residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors 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 2014 Jacob, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Rawdon. In buying his flat 18 years ago, the length of the lease was of little relevance. Fortunately, he realised he would imminently be paying an escalated premium for a lease extension. Jacob was able to extend his lease at the eleventh hour last January. Jacob and the landlord ultimately settled on the final figure of £5,500 . If he not met the deadline, the price would have gone up by a minimum £1,125.
Last October we were called by Dr Y Morel , who completed a one bedroom flat in Rawdon in March 2000. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Identical flats in Rawdon with an extended lease were in the region of £183,600. The average ground rent payable was £65 collected annually. The lease ended in 2082. Given that there were 57 years remaining we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.
Dr Ryan Hall completed a first floor apartment in Rawdon in July 1998. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Rawdon with an extended lease were valued about £245,000. The mid-range ground rent payable was £50 collected quarterly. The lease elapsed in 2093. Having 68 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.