There is no doubt about it a leasehold property in Rogiet is a wasting asset as a result of the shortening lease. Where the residual term has, beyond one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. Many flat owners in Rogiet will qualify for this right; nevertheless a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Rogiet,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rogiet valuers.
16 months ago Eliot, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Rogiet. Having purchased his flat two decades ago, the unexpired term was of minimal significance. Luckily, he recognised he needed to take action soon on a lease extension. Eliot extended the lease just under the wire in September. Eliot and the freeholder via the managing agents in the end settled on a premium of £5,000 . If the lease had dipped below 80 years, the sum would have gone up by at least £1,025.
In 2011 we were approached by Mr and Mrs. K Bernard who, having was assigned a lease of a newly refurbished apartment in Rogiet in November 2006. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Rogiet with a long lease were worth £275,000. The mid-range ground rent payable was £55 billed quarterly. The lease concluded on 2 September 2101. Having 76 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
In 2014 we were called by Mr Gabriel Morris who, having bought a ground floor flat in Rogiet in February 2002. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparative homes in Rogiet with an extended lease were valued about £176,200. The average amount of ground rent was £65 invoiced yearly. The lease ran out in 2081. Given that there were 56 years left we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including legals.