Rhosesmor leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease falls below 80 years - otherwise a higher premium will be due. Flat owners in Rhosesmor will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Rhosesmor,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rhosesmor valuers.
In recent months Adam, started to get near to the 80-year threshold with the lease on his first floor flat in Rhosesmor. Having bought his property two decades ago, the lease term was of minimal bearing. Luckily, it dawned on him that he would soon be paying an inflated amount for a lease extension. Adam arranged for a lease extension just in the nick of time in September. Adam and the landlord ultimately agreed on the final figure of £6,000 . If he not met the deadline, the premium would have increased by a minimum £1,150.
Dr B Nelson bought a one bedroom flat in Rhosesmor in August 2010. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical properties in Rhosesmor with a long lease were in the region of £270,000. The average amount of ground rent was £65 invoiced monthly. The lease end date was in 2093. Taking into account 68 years unexpired we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
In 2009 we were e-mailed by Ms Isobel Nguyen who, having acquired a first floor flat in Rhosesmor in July 1996. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar flats in Rhosesmor with an extended lease were worth £208,600. The average amount of ground rent was £60 billed every twelve months. The lease finished in 2082. Considering the 57 years as a residual term we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus legals.