The market value of a leasehold property in Rossett is impacted by how long the lease has remaining. If it is near to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded prior to the 80 year threshold. Statute enables Rossett qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Rossett with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Coventry Building Society | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rossett can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Rossett lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Henry owned a 2 bedroom apartment in Rossett on the market with a lease of a few days over fifty eight years unexpired. Henry informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Henry to exercise his statutory right. Henry procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.
Last month we were phoned by Mr Muhammad Ramírez , who was assigned a lease of a first floor flat in Rossett in February 1999. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Similar residencies in Rossett with a long lease were worth £256,600. The average amount of ground rent was £60 invoiced quarterly. The lease ran out on 1 September 2077. Given that there were 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 not including expenses.
Mr and Mrs. W Lee purchased a one bedroom apartment in Rossett in March 2009. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar premises in Rossett with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected monthly. The lease lapsed in 2088. Having 63 years unexpired we estimated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus professional charges.