For anyone whose Rhosesmor home is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold properties in Rhosesmor with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Rhosesmor can be a difficult process. We recommend you obtain guidance from a lawyer 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 procuring Rhosesmor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the freeholder of her one bedroom apartment in Rhosesmor, Ellen started the lease extension process just as her lease was nearing the crucial eighty-year deadline. The legal work completed in October 2007. The freeholder’s charges were kept to an absolute minimum.
Dr Sian Reed moved into a basement flat in Rhosesmor in June 2005. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative homes in Rhosesmor with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed per annum. The lease end date was on 6 November 2103. Given that there were 77 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.
In 2014 we were called by Mr Kyle Hill who, having moved into a basement apartment in Rhosesmor in June 1995. We are asked if we could approximate the premium would be to extend the lease by an additional years. Identical premises in Rhosesmor with a long lease were worth £260,200. The average amount of ground rent was £65 invoiced every twelve months. The lease came to a finish on 13 September 2092. Given that there were 66 years remaining we approximated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 not including costs.