Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Rhosesmor. Clearly, the period of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Rhosesmor have the legal entitlement to extend the lease for an additional ninety years under legislation. Please give due deliberation before delaying your Rhosesmor lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease
Leasehold residencies in Rhosesmor with in excess of 100 years left on the lease are sometimes 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 buying the freehold unless savings on ground rent and maintenance 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. |
| 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Engaging our service will provide you increased control over the value of your Rhosesmor leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Henry, came perilously near to the 80-year threshold with the lease on his purpose- built apartment in Rhosesmor. In buying his flat two decades ago, the length of the lease was of no significance. by good luck, he became aware that he needed to take steps soon on a lease extension. Henry was able to extend his lease at the eleventh hour in August. Henry and the freeholder via the managing agents eventually agreed on a premium of £5,500 . If the lease had gone below 80 years, the amount would have gone up by at least £925.
Mr I Norbert completed a newly refurbished flat in Rhosesmor in June 2008. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Identical residencies in Rhosesmor with 100 year plus lease were in the region of £216,000. The average amount of ground rent was £60 collected yearly. The lease terminated in 2084. Given that there were 58 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.
In 2010 we were called by Mrs N Taylor who, having completed a one bedroom flat in Rhosesmor in September 2011. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Rhosesmor with a long lease were valued around £200,000. The average ground rent payable was £50 collected yearly. The lease lapsed in 2104. Having 78 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.