It’s a harsh truth that a Rhiwderin residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Rhiwderin property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be payable. Most flat owners in Rhiwderin will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Rhiwderin with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
The lawyers that we work with procure Rhiwderin 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 lawyer we work with provide it.
Jason owned a conversion flat in Rhiwderin being marketed with a lease of fraction over fifty eight years outstanding. Jason informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant 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 Jason to exercise his statutory right. Jason obtained expert advice and secured an acceptable resolution informally and sell the property.
Ms Emma Turner was assigned a lease of a purpose-built flat in Rhiwderin in July 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar premises in Rhiwderin with a long lease were valued about £256,600. The mid-range amount of ground rent was £60 billed quarterly. The lease expired on 10 November 2077. Taking into account 52 years outstanding we estimated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 not including professional charges.
In 2014 we were contacted by Dr L Stewart who, having purchased a garden apartment in Rhiwderin in April 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Similar homes in Rhiwderin with a long lease were valued around £218,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease finished in 2088. Having 63 years left we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus professional charges.