The only way is down when it comes to Rhosllanerchrugog lease terms. Rhosllanerchrugog properties that have a lease term shorter than 80 years will drop in market price at a rapid rate, and the cost of extending your lease will go up.
Leasehold properties in Rhosllanerchrugog with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Rhosllanerchrugog,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 experience and the close ties they enjoy with Rhosllanerchrugog valuers.
Eliot was the the leasehold proprietor of a high value apartment in Rhosllanerchrugog on the market with a lease of a few days over 72 years left. Eliot informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Eliot to exercise his statutory right. Eliot procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2010 we were contacted by Dr L Evans who, having owned a recently refurbished flat in Rhosllanerchrugog in June 2002. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Identical premises in Rhosllanerchrugog with a long lease were in the region of £242,600. The average amount of ground rent was £45 billed every twelve months. The lease concluded in 2092. Given that there were 67 years left we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including costs.
In 2009 we were phoned by Mr U Parker who, having owned a one bedroom flat in Rhosllanerchrugog in November 2009. The question was if we could approximate the price would be for a 90 year lease extension. Similar flats in Rhosllanerchrugog with an extended lease were worth £280,000. The average amount of ground rent was £55 collected annually. The lease finished in 2103. Given that there were 78 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.