Rossington leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Rossington will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Rossington with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 lawyers that we work with procure Rossington 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.
Finn owned a 2 bedroom apartment in Rossington being marketed with a lease of fraction over sixty years outstanding. Finn informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2011 we were called by Mr and Mrs. E King who, having completed a newly refurbished flat in Rossington in October 2009. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparative premises in Rossington with an extended lease were valued about £208,200. The mid-range amount of ground rent was £65 collected per annum. The lease expired in 2086. Given that there were 61 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of fees.
Last Christmas we were approach by Dr J Nguyen , who was assigned a lease of a basement flat in Rossington in April 2010. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Identical flats in Rossington with a long lease were valued about £260,000. The average ground rent payable was £50 billed monthly. The lease ended on 16 November 2097. Having 72 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.