Rossendale leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the current lease falls under eighty years - otherwise a higher premium will be payable. Flat owners in Rossendale will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Rossendale leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her basement apartment in Rossendale, Jennifer initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction was concluded in May 2010. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. M Jackson who, having bought a newly refurbished apartment in Rossendale in October 2000. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative homes in Rossendale with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 collected yearly. The lease concluded in 2096. Taking into account 71 years remaining we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
Mr Logan Morris owned a one bedroom flat in Rossendale in April 1999. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparative premises in Rossendale with an extended lease were valued around £225,800. The average amount of ground rent was £60 invoiced per annum. The lease expired on 14 February 2085. Taking into account 60 years left we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of legals.