Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Rowlands Gill. Inevitably, the term of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Rowlands Gill have the legal entitlement to extend the lease for a further 90 years under legislation. You should give due attention before putting off your Rowlands Gill lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Rowlands Gill,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rowlands Gill valuers.
During the course of the last few months Max, came seriously near to the 80-year mark with the lease on his garden apartment in Rowlands Gill. In buying his flat twenty years ago, the lease term was of little significance. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Max arranged for a lease extension at the eleventh hour in June. Max and the landlord ultimately agreed on the final figure of £6,000 . If he not met the deadline, the sum would have gone up by at least £1,000.
Last Christmas we were called by Mr P Campbell , who acquired a ground floor apartment in Rowlands Gill in March 2000. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Rowlands Gill with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 collected every twelve months. The lease finished on 8 October 2091. Taking into account 66 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
In 2011 we were approached by Mr B James who, having bought a purpose-built flat in Rowlands Gill in February 2004. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Similar homes in Rowlands Gill with a long lease were valued about £275,000. The average amount of ground rent was £55 invoiced monthly. The lease concluded in 2102. Taking into account 77 years unexpired we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.