The re-sale value of a leasehold property in Rufford depends on how long the lease has remaining. If it is near to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded prior to the 80 year cut off point. Leasehold Reform legislation entitles Rufford qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Rufford with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The lawyers that we work with procure Rufford 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 conveyancing solicitor we work with provide it.
David was the the leasehold owner of a studio flat in Rufford being marketed with a lease of fraction over 61 years outstanding. David on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of 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 David to exercise his statutory right. David procured expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Dr F Ricardo moved into a one bedroom flat in Rufford in June 2003. We are asked if we could estimate the price could be to prolong the lease by an additional years. Identical flats in Rufford with an extended lease were in the region of £189,000. The mid-range amount of ground rent was £55 billed per annum. The lease lapsed on 23 March 2078. Considering the 53 years as a residual term we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.
In 2011 we were called by Ms Rachel Lefèvre who, having took over the lease of a basement apartment in Rufford in January 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Rufford with an extended lease were valued around £290,000. The average ground rent payable was £45 invoiced per annum. The lease elapsed in 2098. Considering the 73 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.