Rossendale leases on domestic deteriorating in value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Leasehold owners in Rossendale will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not qualify. There are also strict deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Rossendale with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Rossendale leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Charlie, started to get close to the 80-year mark with the lease on his ground floor apartment in Rossendale. In buying his flat twenty years ago, the lease term was of no interest. Fortunately, he noticed he would imminently be paying way over the odds for a lease extension. Charlie was able to extend his lease just in the nick of time last May. Charlie and the freeholder subsequently settled on the final figure of £5,000 . If the lease had descended lower than 80 years, the price would have gone up by at least £900.
Ms C Michel was assigned a lease of a studio apartment in Rossendale in June 2001. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable premises in Rossendale with a long lease were valued around £189,000. The average ground rent payable was £55 collected yearly. The lease finished on 27 February 2079. Taking into account 53 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus fees.
In 2013 we were approached by Mr and Mrs. M Collins who, having owned a first floor flat in Rossendale in June 2004. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Comparative premises in Rossendale with a long lease were worth £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed in 2099. Having 73 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.