Rendlesham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Rendlesham tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Rendlesham you must check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
Engaging our service gives you better control over the value of your Rendlesham leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jake was the the leasehold proprietor of a 2 bedroom flat in Rendlesham being sold with a lease of just over 61 years remaining. Jake on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Jake to invoke his statutory right. Jake obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2012 we were e-mailed by Mr Jonathan Dupont who, having completed a ground floor apartment in Rendlesham in August 2002. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Rendlesham with a long lease were worth £285,000. The average amount of ground rent was £45 billed monthly. The lease expiry date was in 2096. Taking into account 71 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last Autumn we were contacted by Dr Seth Stewart , who purchased a one bedroom apartment in Rendlesham in June 2006. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Similar properties in Rendlesham with 100 year plus lease were valued around £225,800. The average ground rent payable was £60 collected quarterly. The lease came to a finish on 14 February 2085. Considering the 60 years left we approximated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 plus legals.