Chances are that if you own a flat in Rhiwderin you actually own a long leasehold interest over your property
Leasehold premises in Rhiwderin with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
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 conveyancing solicitor we work with provide it.
In 2014 Archie, came perilously close to the 80-year mark with the lease on his two bedroom apartment in Rhiwderin. In buying his home two decades ago, the length of the lease was of minimal concern. Thankfully, he noticed he needed to take action soon on Extending the lease. Archie extended the lease just under the wire last May. Archie and the freeholder via the management company eventually settled on a premium of £5,000 . If he not met the deadline, the sum would have escalated by a minimum £1,025.
Mrs A Khan took over the lease of a purpose-built apartment in Rhiwderin in September 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Rhiwderin with a long lease were in the region of £183,600. The mid-range ground rent payable was £65 collected every twelve months. The lease expired in 2082. Given that there were 57 years remaining we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of costs.
Dr Henry Gray completed a newly refurbished apartment in Rhiwderin in October 2002. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Rhiwderin with 100 year plus lease were in the region of £245,000. The mid-range ground rent payable was £50 invoiced per annum. The lease elapsed on 24 April 2093. Having 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.