It’s an underpublicised certainty that a Rogerstone residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Rogerstone property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Rogerstone will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Rogerstone with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Rogerstone can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Rogerstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Austin, came seriously near to the eighty-year threshold with the lease on his first floor apartment in Rogerstone. Having purchased his home two decades ago, the lease term was of little importance. Luckily, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Austin arranged for a lease extension at the eleventh hour in June. Austin and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If he failed to meet the deadline, the premium would have escalated by at least £1,125.
Last Spring we were e-mailed by Ms T Moreau , who moved into a first floor flat in Rogerstone in October 2012. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Rogerstone with 100 year plus lease were worth £183,600. The average ground rent payable was £65 billed yearly. The lease terminated in 2083. Given that there were 57 years outstanding we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.
Last year we were contacted by Mr and Mrs. O Martínez , who was assigned a lease of a studio flat in Rogerstone in February 2007. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Similar properties in Rogerstone with a long lease were valued around £245,000. The mid-range ground rent payable was £50 billed annually. The lease concluded on 11 August 2094. Taking into account 68 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.