Rossendale leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Rossendale enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Rossendale you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rossendale can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
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.
Teddy owned a studio apartment in Rossendale on the market with a lease of a little over sixty years remaining. Teddy on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Winter we were called by Dr Millie Thomas , who moved into a one bedroom apartment in Rossendale in November 2003. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable properties in Rossendale with 100 year plus lease were in the region of £208,600. The average amount of ground rent was £60 invoiced per annum. The lease concluded in 2083. Given that there were 57 years left we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.
In 2011 we were called by Dr Tia Ali who, having purchased a purpose-built apartment in Rossendale in November 2009. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparable flats in Rossendale with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed quarterly. The lease came to a finish in 2103. Taking into account 77 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.