For those whose Rhoose property is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold premises in Rhoose with more than one hundred years unexpired 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Rhoose leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Muhammad, came dangerously close to the 80-year mark with the lease on his leasehold apartment in Rhoose. Having purchased his flat 18 years previously, the lease term was of minimal relevance. Luckily, he noticed he would imminently be paying an inflated amount for a lease extension. Muhammad was able to extend his lease just under the wire in July. Muhammad and the landlord who owned the flat above ultimately settled on sum of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,150.
In 2014 we were phoned by Mr D Moore who, having completed a garden flat in Rhoose in August 2008. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative flats in Rhoose with 100 year plus lease were valued around £191,400. The average amount of ground rent was £55 billed monthly. The lease concluded on 24 August 2080. Having 54 years outstanding we calculated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of fees.
Last month we were contacted by Mrs Chantelle King , who moved into a garden apartment in Rhoose in September 1998. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Rhoose with a long lease were in the region of £295,000. The average ground rent payable was £45 invoiced every twelve months. The lease lapsed in 2100. Considering the 74 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.