When it comes to residential leasehold premises in Rhos On Sea, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than 80 years remaining. Leasehold owners in Rhos On Sea with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has below eighty years left, under the current Act the landlord can calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Rhos On Sea with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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 Rhos On Sea can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 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 Lucas, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Rhos On Sea. In buying his home two decades ago, the length of the lease was of little importance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Lucas extended the lease just ahead of time in January. Lucas and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If he not met the deadline, the premium would have increased by a minimum £1,100.
Dr Benjamin Bonnet bought a garden flat in Rhos On Sea in July 2004. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Rhos On Sea with an extended lease were valued around £227,800. The average ground rent payable was £45 invoiced quarterly. The lease ran out on 24 March 2090. Taking into account 65 years unexpired we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.
Last Spring we were phoned by Mr and Mrs. A Watson , who bought a newly refurbished apartment in Rhos On Sea in February 1997. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Rhos On Sea with 100 year plus lease were valued around £275,000. The average amount of ground rent was £55 billed every twelve months. The lease concluded on 27 April 2101. Taking into account 76 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.