Rossett leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. Leasehold owners in Rossett will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
Trailing lengthy discussions with the landlord of her two bedroom apartment in Rossett, Yasmin commenced the lease extension process as the eighty year threshold was fast coming. The lease extension completed in February 2014. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were called by Mr and Mrs. W Parker who, having acquired a one bedroom flat in Rossett in March 2005. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative premises in Rossett with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 collected every twelve months. The lease concluded on 24 September 2096. Considering the 71 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
Dr Lily Hill moved into a recently refurbished flat in Rossett in August 2011. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Rossett with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 billed every twelve months. The lease finished in 2076. Having 51 years left we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 plus fees.