Ross On Wye leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Ross On Wye will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Ross On Wye,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ross On Wye valuers.
Leo owned a 2 bedroom apartment in Ross On Wye on the market with a lease of a few days over 72 years unexpired. Leo informally approached his landlord being a well known Bristol-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 initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leo to invoke his statutory right. Leo procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Dr T Gómez moved into a purpose-built flat in Ross On Wye in September 2001. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Identical properties in Ross On Wye with a long lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease termination date was in 2100. Having 75 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2013 we were called by Mr and Mrs. P Anderson who, having completed a basement apartment in Ross On Wye in January 1997. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar flats in Ross On Wye with 100 year plus lease were valued around £250,400. The average ground rent payable was £65 collected every twelve months. The lease concluded in 2089. Given that there were 64 years remaining we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.