Rhoose leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Rhoose residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Rhoose you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Rhoose,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rhoose valuers.
Twenty four months ago Kian, came very near to the eighty-year threshold with the lease on his one bedroom flat in Rhoose. In buying his home 19 years previously, the length of the lease was of no bearing. Fortunately, he became aware that he needed to take steps soon on a lease extension. Kian extended the lease just under the wire last March. Kian and the freeholder subsequently settled on an amount of £5,500 . If the lease had descended to less than 80 years, the price would have gone up by at least £1,075.
Mr and Mrs. T Kelly acquired a purpose-built flat in Rhoose in March 1996. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Rhoose with 100 year plus lease were worth £270,000. The average ground rent payable was £65 billed every twelve months. The lease terminated on 11 January 2093. Given that there were 68 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
Last year we were approach by Ms Danielle Ward , who was assigned a lease of a basement apartment in Rhoose in September 2006. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable premises in Rhoose with 100 year plus lease were in the region of £208,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease elapsed in 2082. Having 57 years remaining we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.