Unfortunately that a Rhosllanerchrugog residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Rhosllanerchrugog property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term dips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Rhosllanerchrugog will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Rhosllanerchrugog with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Coventry Building Society | 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. |
Engaging our service will provide you better control over the value of your Rhosllanerchrugog leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oscar was the the leasehold proprietor of a 2 bedroom apartment in Rhosllanerchrugog on the market with a lease of just over 61 years outstanding. Oscar on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
In 2013 we were phoned by Mr and Mrs. C Adams who, having bought a recently refurbished flat in Rhosllanerchrugog in March 2003. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar premises in Rhosllanerchrugog with a long lease were in the region of £265,000. The mid-range ground rent payable was £55 billed per annum. The lease ran out on 17 January 2100. Having 74 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Mr T Flores took over the lease of a one bedroom flat in Rhosllanerchrugog in July 1996. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical flats in Rhosllanerchrugog with 100 year plus lease were valued about £166,400. The mid-range ground rent payable was £60 billed annually. The lease terminated in 2080. Taking into account 54 years outstanding we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus expenses.