Rogiet leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Rogiet residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Rogiet you should check if your lease has between seventy and ninety years left. There are compelling reasons why a Rogiet flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Rogiet with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Rogiet can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Rogiet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luke owned a 2 bedroom apartment in Rogiet being marketed with a lease of a few days over fifty eight years unexpired. Luke informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Luke to exercise his statutory right. Luke obtained expert advice and secured satisfactory deal informally and sell the property.
Last Summer we were phoned by Mr and Mrs. N Morgan , who acquired a first floor apartment in Rogiet in October 2008. The question was if we could estimate the price would likely be to extend the lease by an additional years. Comparable residencies in Rogiet with a long lease were worth £260,000. The average amount of ground rent was £50 billed quarterly. The lease termination date was in 2097. Considering the 71 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
Last September we were contacted by Mr and Mrs. N Walker , who completed a garden flat in Rogiet in February 2008. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative residencies in Rogiet with 100 year plus lease were valued about £254,200. The mid-range ground rent payable was £60 billed monthly. The lease came to a finish on 5 June 2077. Considering the 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 plus costs.