The only way is down when it comes to Ross On Wye lease terms. Ross On Wye properties that have a lease term less than than 80 years will de-escalate in market price even faster, and the cost of extending your lease will rise.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Ross On Wye can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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 dealing with Ross On Wye lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luca was the the leasehold owner of a high value flat in Ross On Wye being marketed with a lease of just over 59 years outstanding. Luca on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luca to invoke his statutory right. Luca obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2013 we were approached by Mr R Pérez who, having moved into a basement flat in Ross On Wye in May 1998. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Ross On Wye with a long lease were valued around £174,200. The mid-range ground rent payable was £55 collected per annum. The lease ran out in 2076. Given that there were 51 years left we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.
Last March we were e-mailed by Dr E Jackson , who took over the lease of a first floor apartment in Ross On Wye in July 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Ross On Wye with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease finished in 2096. Taking into account 71 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.