Rendlesham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Rendlesham tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Rendlesham you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Rendlesham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rendlesham valuers.
Two years ago Finn, started to get close to the eighty-year threshold with the lease on his basement apartment in Rendlesham. Having purchased his flat twenty years ago, the unexpired term was of no bearing. Luckily, he noticed he needed to take action soon on Extending the lease. Finn arranged for a lease extension just in the nick of time last June. Finn and the freeholder via the management company in the end agreed on a premium of £6,000 . If the lease had fallen to less than 80 years, the figure would have become more exhorbitant by at least £1,100.
Ms E Rogers moved into a ground floor apartment in Rendlesham in October 1995. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Similar flats in Rendlesham with a long lease were worth £250,400. The average amount of ground rent was £65 billed yearly. The lease elapsed in 2089. Taking into account 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including fees.
Mr and Mrs. H Rivera completed a ground floor apartment in Rendlesham in June 2002. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable homes in Rendlesham with 100 year plus lease were valued around £189,000. The mid-range ground rent payable was £55 billed yearly. The lease lapsed on 3 June 2078. Taking into account 53 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.