Rossington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Rossington residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Rossington you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Rossington with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Rossington leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her garden apartment in Rossington, Isabella started the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction was finalised in March 2008. The landlord’s charges were kept to an absolute minimum.
Last October we were contacted by Mr T Evans , who moved into a studio flat in Rossington in November 2009. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar premises in Rossington with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 collected yearly. The lease concluded on 28 November 2082. Having 56 years unexpired we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including costs.
Mrs R Jones acquired a first floor apartment in Rossington in April 1998. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar residencies in Rossington with an extended lease were worth £242,600. The average amount of ground rent was £45 collected every twelve months. The lease elapsed on 12 January 2093. Taking into account 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus expenses.