With a long leasehold premises in Rhosneigr, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Leasehold owners in Rhosneigr with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the current Act the freeholder is entitled to calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Rhosneigr with in excess of one hundred years left 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 to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Rhosneigr can be a difficult process. We recommend you obtain guidance from a conveyancer 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 a wealth of experience dealing with Rhosneigr lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aiden owned a 2 bedroom flat in Rhosneigr being marketed with a lease of a little over 59 years unexpired. Aiden informally spoke with his landlord being a well known local-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 new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Dr B Cook moved into a purpose-built flat in Rhosneigr in June 1998. We are asked if we could approximate the premium could be to extend the lease by an additional years. Identical properties in Rhosneigr with a long lease were valued around £208,600. The average amount of ground rent was £60 invoiced annually. The lease ran out on 3 November 2082. Given that there were 57 years outstanding we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including fees.
Dr C Cook bought a studio flat in Rhosneigr in November 2010. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Identical premises in Rhosneigr with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 billed annually. The lease came to a finish on 25 June 2102. Taking into account 77 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.