It’s an underpublicised certainty that a Rhiwderin residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Rhiwderin property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Rhiwderin will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| Santander | |
| Skipton Building Society | |
| Yorkshire Building Society |
The conveyancers that we work with undertake 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 conveyancer we work with provide it.
In the wake of 9 months of unsuccessful negotiations with the landlord of her ground floor flat in Rhiwderin, Abbie commenced the lease extension process as the eighty year deadline was fast nearing. The legal work was finalised in August 2010. The freeholder’s fees were restricted to approximately 500 GBP.
Ms Jade Baker acquired a newly refurbished flat in Rhiwderin in April 2010. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar premises in Rhiwderin with an extended lease were in the region of £210,600. The average ground rent payable was £45 billed annually. The lease came to a finish on 15 January 2088. Taking into account 62 years unexpired we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.
Mr and Mrs. U Nguyen was assigned a lease of a studio apartment in Rhiwderin in March 2011. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparable homes in Rhiwderin with a long lease were worth £265,000. The average amount of ground rent was £50 collected quarterly. The lease elapsed in 2099. Having 73 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.