The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Rossett have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Rossett lease extension. Shelving the costs now simply increases the amount you will ultimately have to pay to extend the lease.
Leasehold residencies in Rossett with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service 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. |
| Bank of Scotland | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with undertake Rossett lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 9 months of lengthy correspondence with the landlord of her first floor apartment in Rossett, Amy initiated the lease extension process as the eighty year deadline was swiftly advancing. The transaction completed in August 2010. The landlord’s charges were kept to an absolute minimum.
Last month we were contacted by Mrs U Scott , who owned a purpose-built flat in Rossett in May 1998. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative homes in Rossett with an extended lease were valued around £285,000. The average ground rent payable was £55 collected quarterly. The lease ended on 5 January 2106. Given that there were 80 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
Mrs O Garcia was assigned a lease of a ground floor apartment in Rossett in November 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar flats in Rossett with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed on 20 January 2086. Considering the 60 years remaining we calculated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of expenses.