It’s an underpublicised truth that a Rossendale residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Rossendale property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Most leasehold owners in Rossendale will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in Rossendale with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Rossendale,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rossendale valuers.
After lengthy discussions with the landlord of her one bedroom flat in Rossendale, Nicole initiated the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The transaction completed in March 2010. The freeholder’s charges were restricted to below 600 GBP.
In 2010 we were called by Mr and Mrs. C Nguyen who, having owned a newly refurbished apartment in Rossendale in July 1999. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical properties in Rossendale with an extended lease were in the region of £166,800. The mid-range amount of ground rent was £55 billed per annum. The lease ran out on 22 July 2076. Considering the 50 years unexpired we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus fees.
In 2011 we were called by Dr Ashleigh Garcia who, having moved into a garden flat in Rossendale in June 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparative flats in Rossendale with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 invoiced per annum. The lease terminated in 2096. Given that there were 70 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.