When it comes to long leasehold property in Ross On Wye, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Anyone in Ross On Wye with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has under eighty years remaining, under the current Act the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Ross On Wye with more than one hundred years left on the lease are often referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Ross On Wye 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.
Subsequent to protracted negotiations with the freeholder of her ground floor flat in Ross On Wye, Alicia commenced the lease extension process just as her lease was nearing the all-important 80-year mark. The transaction was finalised in March 2012. The landlord’s costs were kept to an absolute minimum.
Dr Tyler Lambert bought a one bedroom apartment in Ross On Wye in September 2008. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparable residencies in Ross On Wye with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 billed yearly. The lease concluded on 12 February 2088. Taking into account 63 years left we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including expenses.
Last Winter we were e-mailed by Mr and Mrs. W Mitchell , who bought a purpose-built flat in Ross On Wye in February 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable premises in Ross On Wye with a long lease were in the region of £181,600. The average amount of ground rent was £55 billed per annum. The lease expiry date was in 2077. Considering the 52 years unexpired we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.