The market value of a leasehold property in Rhoose depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be concluded in advance of the 80 year cut off point. Leasehold Reform legislation entitles Rhoose qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Rhoose with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. 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 |
|---|---|
| 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. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with undertake Rhoose 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.
14 months ago Blake, came critically near to the 80-year mark with the lease on his first floor flat in Rhoose. In buying his flat two decades ago, the unexpired term was of no interest. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Blake arranged for a lease extension just under the wire last July. Blake and the freeholder via the managing agents ultimately agreed on the final figure of £6,000 . If the lease had slid lower than 80 years, the sum would have gone up by a minimum £1,000.
Last March we were phoned by Ms N Lefebvre , who took over the lease of a one bedroom flat in Rhoose in March 2012. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable properties in Rhoose with a long lease were worth £290,000. The mid-range amount of ground rent was £45 billed monthly. The lease concluded in 2098. Considering the 73 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2012 we were approached by Mr and Mrs. L André who, having bought a one bedroom apartment in Rhoose in April 2000. We are asked if we could estimate the premium would be to extend the lease by 90 years. Identical premises in Rhoose with a long lease were worth £235,600. The average ground rent payable was £60 billed monthly. The lease ran out in 2087. Taking into account 62 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus costs.