The re-sale value of a leasehold property in Rhosllanerchrugog depends on how long the lease has left to run. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that all matters can be concluded well before the 80 year mark. Current legislation enables Rhosllanerchrugog qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Rhosllanerchrugog with over 100 years outstanding on the lease are often referred to as ‘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 warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Rhosllanerchrugog can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in this area.
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 a wealth of experience dealing with Rhosllanerchrugog lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jacob was the the leasehold proprietor of a studio apartment in Rhosllanerchrugog being marketed with a lease of a little over 61 years outstanding. Jacob on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Last Summer we were e-mailed by Mr and Mrs. G Jones , who acquired a garden flat in Rhosllanerchrugog in September 2002. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Identical properties in Rhosllanerchrugog with a long lease were valued about £261,600. The average amount of ground rent was £60 billed monthly. The lease ran out in 2077. Having 52 years remaining we estimated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus professional charges.
Last Winter we were contacted by Mr and Mrs. H Murphy , who took over the lease of a studio flat in Rhosllanerchrugog in May 1995. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Rhosllanerchrugog with a long lease were in the region of £218,000. The mid-range ground rent payable was £45 collected every twelve months. The lease expired on 19 August 2088. Considering the 63 years left we estimated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus legals.