Rhos On Sea leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Rhos On Sea tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Rhos On Sea you really ought to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Rhos On Sea with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rhos On Sea can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience procuring Rhos On Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Alfie, started to get near to the eighty-year threshold with the lease on his first floor flat in Rhos On Sea. In buying his property two decades ago, the lease term was of minimal bearing. Fortunately, he realised he needed to take action soon on a lease extension. Alfie arranged for a lease extension at the eleventh hour in August. Alfie and the landlord eventually agreed on a premium of £6,000 . If the lease had slid lower than eighty years, the premium would have gone up by a minimum £1,125.
Last Spring we were approach by Dr Harvey Alexander , who acquired a basement apartment in Rhos On Sea in October 1998. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable flats in Rhos On Sea with an extended lease were in the region of £237,600. The mid-range amount of ground rent was £45 billed per annum. The lease concluded in 2093. Given that there were 67 years remaining we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.
Last Summer we were approach by Dr S Bertrand , who took over the lease of a ground floor apartment in Rhos On Sea in March 2007. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Identical flats in Rhos On Sea with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 invoiced per annum. The lease finished on 23 August 2104. Having 78 years left we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.