The only way is down when it comes to Rossendale lease terms. Rossendale properties that have a lease term fewer than 80 years will reduce in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold residencies in Rossendale with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| 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 secure professional help from a lawyer 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 a wealth of experience dealing with Rossendale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Ali, came critically close to the 80-year mark with the lease on his first floor apartment in Rossendale. Having bought his flat 18 years previously, the unexpired term was of no interest. Thankfully, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Ali extended the lease just ahead of time last April. Ali and the landlord who owned the flat above ultimately agreed on a premium of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,075.
Mrs Stephanie Robinson completed a garden apartment in Rossendale in June 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparable properties in Rossendale with a long lease were worth £300,000. The average amount of ground rent was £50 collected quarterly. The lease elapsed on 23 September 2101. Having 76 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
Last Autumn we were phoned by Mr and Mrs. G Ward , who owned a studio apartment in Rossendale in February 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable flats in Rossendale with 100 year plus lease were valued about £257,800. The mid-range amount of ground rent was £65 billed monthly. The lease expired in 2090. Considering the 65 years remaining we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 not including legals.