With a long leasehold premises in Rossett, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Residents in Rossett with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When the lease term has below 80 years left, under the current Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Rossett,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 Rossett valuers.
In 2014 Daniel, started to get close to the 80-year mark with the lease on his ground floor apartment in Rossett. In buying his property two decades ago, the unexpired term was of little significance. by good luck, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Daniel was able to extend his lease at the eleventh hour in May. Daniel and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If the lease had slid to less than eighty years, the figure would have become more exhorbitant by a minimum £1,150.
Last Christmas we were called by Mrs D Turner , who bought a studio flat in Rossett in November 2008. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar premises in Rossett with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 invoiced monthly. The lease end date was in 2085. Taking into account 59 years remaining we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of costs.
Mr and Mrs. V Nelson moved into a basement apartment in Rossett in January 1995. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical flats in Rossett with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed annually. The lease lapsed in 2096. Having 70 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.