Rise Park leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease falls below eighty years - otherwise a higher amount will be payable. Flat owners in Rise Park will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Rise Park 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Rise Park,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rise Park valuers.
Rory was the the leasehold proprietor of a conversion flat in Rise Park on the market with a lease of a few days over sixty years left. Rory on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Rory to invoke his statutory right. Rory procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Summer we were approach by Mr and Mrs. R Gómez , who bought a purpose-built flat in Rise Park in February 2001. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable flats in Rise Park with a long lease were in the region of £196,400. The average amount of ground rent was £55 billed per annum. The lease expired on 4 September 2080. Considering the 54 years outstanding we estimated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 plus professional charges.
An example of a Lease Extension case for a Rise Park residence is Flat b 14 Kemble Road in May 2014. The Tribunal assessed the value of the premium payable for the lease extension to be £9,761 This case was in relation to 1 flat.