As the length of the unexpired term of a Rossendale residential lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 125 years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Rossendale will meet the qualifying criteria; however a conveyancer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Rossendale,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rossendale valuers.
Connor owned a 2 bedroom flat in Rossendale being sold with a lease of fraction over sixty years left. Connor informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Connor to exercise his statutory right. Connor obtained expert advice and secured satisfactory deal informally and readily saleable.
Mr and Mrs. T Ricardo owned a studio apartment in Rossendale in April 1995. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Identical premises in Rossendale with a long lease were worth £275,000. The mid-range ground rent payable was £45 collected monthly. The lease terminated on 9 January 2095. Given that there were 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
In 2010 we were e-mailed by Dr Alisha Sharif who, having took over the lease of a garden flat in Rossendale in March 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar homes in Rossendale with a long lease were valued about £216,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease expired in 2084. Considering the 58 years outstanding we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including costs.