Rise Park leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops below 80 years - otherwise a higher amount will be due. Leasehold owners in Rise Park will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain situations you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Rise Park with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Rise Park leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Thomas was the the leasehold proprietor of a high value flat in Rise Park being sold with a lease of just over 61 years remaining. Thomas on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Thomas to exercise his statutory right. Thomas procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2011 we were phoned by Dr Ollie Watson who, having acquired a recently refurbished flat in Rise Park in June 2005. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar homes in Rise Park with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed monthly. The lease came to a finish in 2103. Taking into account 77 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Rise Park flat 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 related to 1 flat.