Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Rogerstone. Clearly, the length of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Rogerstone have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give due consideration before putting off your Rogerstone lease extension. Putting off that expense now simply increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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 30 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 |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
After unsuccessful correspondence with the freeholder of her one bedroom apartment in Rogerstone, Yasmin commenced the lease extension process as the 80 year deadline was swiftly coming. The lease extension was finalised in May 2012. The landlord’s charges were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. H Bell , who took over the lease of a ground floor apartment in Rogerstone in January 2009. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar flats in Rogerstone with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 collected per annum. The lease came to a finish in 2078. Taking into account 52 years left we approximated the premium to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of costs.
Mr and Mrs. R Bennett moved into a studio flat in Rogerstone in February 1995. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparative flats in Rogerstone with 100 year plus lease were worth £218,000. The mid-range ground rent payable was £45 collected annually. The lease ran out on 7 January 2089. Considering the 63 years outstanding we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus professional charges.