With a residential leasehold property in Rufford, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years left. Residents in Rufford with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once a lease has less than eighty years outstanding, under the relevant statute the landlord is entitled to calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Rufford with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Engaging our service gives you better control over the value of your Rufford leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Eli owned a high value flat in Rufford being sold with a lease of fraction over sixty years outstanding. Eli informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Eli to invoke his statutory right. Eli procured expert advice and secured an acceptable resolution informally and sell the property.
In 2009 we were called by Mr L Turner who, having was assigned a lease of a one bedroom apartment in Rufford in September 1999. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Rufford with a long lease were worth £225,800. The mid-range amount of ground rent was £60 collected yearly. The lease finished on 3 August 2085. Having 60 years remaining we approximated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 plus fees.
In 2012 we were contacted by Mr S Mason who, having purchased a first floor flat in Rufford in March 2005. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative homes in Rufford with a long lease were valued about £210,000. The average ground rent payable was £50 collected per annum. The lease terminated on 2 September 2105. Considering the 80 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.