Rise Park leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Rise Park residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Rise Park you would be well advised to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Rise Park with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Rise Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Ryan, came precariously near to the 80-year threshold with the lease on his garden apartment in Rise Park. In buying his home twenty years previously, the unexpired term was of no bearing. by good luck, he noticed he needed to take action soon on Extending the lease. Ryan extended the lease just under the wire last April. Ryan and the freeholder in the end settled on the final figure of £5,500 . If he not met the deadline, the price would have increased by at least £1,100.
Last Winter we were called by Ms Catherine Petit , who was assigned a lease of a recently refurbished apartment in Rise Park in September 2012. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparable homes in Rise Park with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 billed monthly. The lease lapsed in 2089. Having 64 years unexpired we approximated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Rise Park property 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.