The value of Rogiet leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than 80 years
Leasehold properties in Rogiet with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 lawyers that we work with handle Rogiet 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.
Sebastian owned a studio apartment in Rogiet on the market with a lease of just over fifty eight years outstanding. Sebastian on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last Christmas we were called by Mrs O Gómez , who took over the lease of a one bedroom flat in Rogiet in June 2006. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Rogiet with an extended lease were in the region of £166,400. The average ground rent payable was £60 billed per annum. The lease elapsed on 5 January 2080. Given that there were 54 years left we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.
In 2010 we were contacted by Mrs Georgia Rogers who, having was assigned a lease of a purpose-built apartment in Rogiet in April 1998. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Similar homes in Rogiet with a long lease were in the region of £227,800. The average ground rent payable was £45 billed yearly. The lease expired on 20 April 2091. Having 65 years left we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.