Ross On Wye leases on residential properties are gradually losing 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 Ross On Wye residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Ross On Wye you should see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Ross On Wye leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Ross On Wye with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service will provide you increased control over the value of your Ross On Wye leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago George, came perilously near to the eighty-year mark with the lease on his two bedroom apartment in Ross On Wye. Having purchased his property two decades ago, the length of the lease was of little concern. Luckily, it dawned on him that he needed to take action soon on a lease extension. George arranged for a lease extension just under the wire last July. George and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £850.
Dr Muhammad Anderson purchased a first floor apartment in Ross On Wye in November 2009. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar residencies in Ross On Wye with an extended lease were valued about £225,800. The average amount of ground rent was £60 invoiced quarterly. The lease ran out on 11 May 2086. Taking into account 60 years remaining we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 not including professional charges.
Dr S Wilson owned a recently refurbished apartment in Ross On Wye in October 2001. The question was if we could estimate the price would be for a 90 year lease extension. Identical flats in Ross On Wye with a long lease were in the region of £210,000. The average ground rent payable was £50 collected yearly. The lease expired on 6 October 2106. Given that there were 80 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.