When it comes to long leasehold premises in Rossington, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Leasehold owners in Rossington with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years remaining, under the current legislation the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Rossington with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Rossington leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Reuben, came precariously near to the eighty-year threshold with the lease on his garden apartment in Rossington. Having bought his flat two decades ago, the unexpired term was of minimal relevance. Luckily, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Reuben was able to extend his lease at the eleventh hour in April. Reuben and the freeholder via the management company in the end agreed on an amount of £6,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £925.
In 2009 we were phoned by Mr David Lambert who, having owned a garden flat in Rossington in August 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Rossington with a long lease were in the region of £270,000. The average amount of ground rent was £55 collected per annum. The lease expired on 24 April 2101. Given that there were 75 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Last Summer we were called by Mr Evan Garcia , who took over the lease of a purpose-built flat in Rossington in January 2000. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative properties in Rossington with a long lease were valued around £173,800. The average amount of ground rent was £60 billed quarterly. The lease ended in 2081. Considering the 55 years remaining we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.