When it comes to residential leasehold property in Rogerstone, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Leasehold owners in Rogerstone with a lease approaching 81 years left should seriously think of extending it without delay. Once the lease term has less than 80 years left, under the relevant statute the freeholder can calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
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 lawyer we work with provide it.
Last year Elijah, started to get close to the eighty-year threshold with the lease on his ground floor flat in Rogerstone. In buying his home two decades ago, the unexpired term was of little concern. Fortunately, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Elijah arranged for a lease extension just in the nick of time last March. Elijah and the freeholder in the end settled on an amount of £6,000 . If the lease had dropped lower than eighty years, the amount would have escalated by at least £1,150.
Mrs Y Mercier was assigned a lease of a ground floor apartment in Rogerstone in June 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Rogerstone with 100 year plus lease were valued about £210,600. The mid-range ground rent payable was £45 billed quarterly. The lease expired on 15 September 2087. Considering the 62 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including professional charges.
Mr S Moreau purchased a first floor apartment in Rogerstone in October 2001. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar premises in Rogerstone with an extended lease were worth £265,000. The average amount of ground rent was £50 billed quarterly. The lease end date was on 22 January 2098. Having 73 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.