The only way is down when it comes to Rise Park lease terms. Rise Park flats that have a residual term less than than eighty years will reduce in market price at a rapid rate, and the cost of extending your lease will increase.
Leasehold premises in Rise Park with over 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Using our service gives you better control over the value of your Rise Park 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.
Subsequent to unsuccessful correspondence with the freeholder of her one bedroom apartment in Rise Park, Lauren initiated the lease extension process just as her lease was nearing the critical eighty-year threshold. The lease extension was concluded in February 2006. The freeholder’s charges were negotiated to under six hundred pounds.
Mr and Mrs. D Richardson completed a purpose-built flat in Rise Park in February 2009. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical homes in Rise Park with 100 year plus lease were worth £171,800. The average amount of ground rent was £55 billed per annum. The lease lapsed in 2076. Having 50 years remaining we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of fees.
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 affected 1 flat.