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 becomes more expensive. It is the case that most Rendlesham tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Rendlesham you would be well advised to investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Rendlesham leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Rendlesham leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Connor owned a 2 bedroom flat in Rendlesham being marketed with a lease of just over fifty eight years remaining. Connor on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. 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 £100 annually. No ground rent would be payable on a lease extension were Connor to exercise his statutory right. Connor procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Last Winter we were approach by Dr Poppy Brooks , who completed a ground floor apartment in Rendlesham in May 2003. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative properties in Rendlesham with a long lease were worth £198,800. The mid-range ground rent payable was £55 invoiced per annum. The lease ran out in 2081. Given that there were 55 years outstanding we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including costs.
In 2011 we were phoned by Mrs W Kelly who, having acquired a basement flat in Rendlesham in September 2006. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Identical flats in Rendlesham with 100 year plus lease were valued about £300,000. The average amount of ground rent was £50 billed per annum. The lease elapsed on 13 November 2101. Considering the 75 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.