The re-sale value of a leasehold property in Rogerstone depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that formalities can be concluded well before the eighty year cut off point. Current legislation enables Rogerstone qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Rogerstone with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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 lawyer we work with provide it.
In the wake of eight months of unsuccessful correspondence with the landlord of her one bedroom apartment in Rogerstone, Isabel commenced the lease extension process as the eighty year deadline was rapidly advancing. The transaction completed in May 2014. The landlord’s fees were kept to an absolute minimum.
In 2013 we were phoned by Dr V Brown who, having moved into a purpose-built flat in Rogerstone in July 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in Rogerstone with a long lease were in the region of £246,800. The average amount of ground rent was £60 invoiced every twelve months. The lease ended on 17 February 2076. Taking into account 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including professional charges.
Last Summer we were phoned by Mr Sebastian Ricardo , who owned a garden apartment in Rogerstone in March 2003. The question was if we could estimate the premium could be to prolong the lease by an additional years. Comparable residencies in Rogerstone with a long lease were worth £208,200. The average ground rent payable was £65 billed annually. The lease termination date was on 25 April 2087. Considering the 61 years remaining we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including costs.