Chances are that where you own a flat in Rhoose you actually own a long leasehold interest over your property
Leasehold premises in Rhoose with more than 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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rhoose can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Rhoose lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the landlord of her garden apartment in Rhoose, Mia commenced the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension completed in August 2008. The freeholder’s costs were restricted to a tad over 600 GBP.
In 2009 we were approached by Ms B Edwards who, having purchased a recently refurbished flat in Rhoose in February 1997. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar properties in Rhoose with an extended lease were worth £210,000. The average amount of ground rent was £50 invoiced annually. The lease came to a finish in 2105. Having 80 years outstanding we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.
In 2014 we were approached by Dr Georgia Mason who, having acquired a basement flat in Rhoose in October 2004. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Similar homes in Rhoose with an extended lease were in the region of £275,000. The average amount of ground rent was £45 invoiced annually. The lease expired on 5 February 2094. Considering the 69 years left we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.