The value of Roehampton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the remaining term is below than eighty years
Leasehold properties in Roehampton with more than one hundred years left on the lease are sometimes 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 upside in 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. |
| Birmingham Midshires | 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. |
| 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. |
The conveyancing solicitors that we work with handle Roehampton 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.
During the course of the last few months Owen, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Roehampton. In buying his home 18 years previously, the unexpired term was of little importance. As luck would have it, he became aware that he would imminently be paying an inflated amount for Extending the lease. Owen arranged for a lease extension at the eleventh hour in August. Owen and the landlord who owned the flat above eventually settled on a premium of £5,000 . If the lease had slid to less than 80 years, the figure would have gone up by a minimum £975.
Mrs Stephanie Petit owned a first floor flat in Roehampton in May 2003. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar properties in Roehampton with an extended lease were worth £250,400. The average amount of ground rent was £65 invoiced annually. The lease concluded on 3 November 2089. Given that there were 64 years left we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Roehampton premises is 19 St. Margarets Crescent in August 2010. the tribunal was of the view that the premium to be paid by the leaseholder for the freehold reversion was £51,983.00 This case related to 3 flats. The number of years remaining on the existing lease(s) was 66.25 years.