The only way is down when it comes to Rawdon lease terms. Rawdon flats that have a residual term fewer than 80 years will drop in market price at a rapid rate, and the cost of extending your lease will rise.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Rawdon leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Jackson, started to get near to the eighty-year threshold with the lease on his first floor flat in Rawdon. Having bought his property twenty years ago, the length of the lease was of no relevance. Fortunately, he recognised he needed to take steps soon on Extending the lease. Jackson extended the lease just under the wire in January. Jackson and the landlord ultimately agreed on the final figure of £5,000 . If he had missed the deadline, the sum would have escalated by at least £1,100.
In 2014 we were phoned by Mr and Mrs. S Davis who, having acquired a purpose-built flat in Rawdon in January 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Rawdon with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish on 6 September 2104. Given that there were 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
In 2011 we were e-mailed by Ms Amelia Bailey who, having moved into a studio apartment in Rawdon in October 2010. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative residencies in Rawdon with 100 year plus lease were worth £186,000. The average ground rent payable was £65 collected quarterly. The lease expiry date was in 2084. Given that there were 58 years unexpired we estimated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of expenses.