The closer a residential lease in Rossendale gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond one hundred years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. Most flat owners in Rossendale will meet the qualifying criteria; nevertheless a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than one hundred 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 residence will be worth the same as a freehold for many years in the future.
| 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; |
| 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. |
| 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 Rossendale can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor 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 procuring Rossendale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy negotiations with the freeholder of her two bedroom apartment in Rossendale, Jodie commenced the lease extension process as the eighty year deadline was quickly advancing. The legal work completed in January 2009. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were approached by Mr and Mrs. L Turner who, having purchased a basement apartment in Rossendale in May 2003. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Identical residencies in Rossendale with 100 year plus lease were valued around £181,600. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease came to a finish in 2077. Given that there were 52 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including professional charges.
Last Christmas we were phoned by Mr and Mrs. D Adams , who owned a basement flat in Rossendale in July 1997. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable homes in Rossendale with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 billed per annum. The lease elapsed in 2097. Taking into account 72 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.