There is no doubt about it a leasehold property in Rowlands Gill is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 100 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Rowlands Gill will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Rowlands Gill with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Retaining our service gives you increased control over the value of your Rowlands Gill leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the freeholder of her purpose-built flat in Rowlands Gill, Lily commenced the lease extension process as the eighty year mark was swiftly nearing. The transaction was concluded in October 2011. The landlord’s charges were kept to an absolute minimum.
Mr Felix Lewis was assigned a lease of a ground floor apartment in Rowlands Gill in October 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar homes in Rowlands Gill with an extended lease were in the region of £203,200. The average amount of ground rent was £65 billed per annum. The lease ran out in 2086. Having 61 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus professional charges.
Mr and Mrs. Y Clarke bought a ground floor flat in Rowlands Gill in April 2010. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Rowlands Gill with a long lease were valued about £260,000. The average amount of ground rent was £50 invoiced annually. The lease end date was in 2097. Given that there were 72 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.