The closer a domestic lease in Rogerstone gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner than later. Most flat owners in Rogerstone will qualify for this right; however a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Rogerstone 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 conveyancer we work with provide it.
Teddy owned a conversion flat in Rogerstone being sold with a lease of a little over 72 years remaining. Teddy on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last Spring we were approach by Mrs Y Robinson , who owned a first floor flat in Rogerstone in May 2010. We are asked if we could estimate the price could be for a ninety year lease extension. Similar premises in Rogerstone with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 billed per annum. The lease lapsed in 2095. Given that there were 69 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
Mrs Natasha Harris purchased a one bedroom apartment in Rogerstone in September 2005. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparative premises in Rogerstone with a long lease were worth £285,000. The mid-range ground rent payable was £55 billed monthly. The lease terminated on 24 June 2106. Taking into account 80 years unexpired we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.