The value of Rugby leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is less than 80 years
Leasehold residencies in Rugby with more than 100 years remaining 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society |
Regardless of whether you are a tenant or a landlord in Rugby,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rugby valuers.
Omar was the the leasehold proprietor of a 2 bedroom apartment in Rugby on the market with a lease of a few days over 72 years unexpired. Omar on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Omar to exercise his statutory right. Omar obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2010 we were contacted by Mr and Mrs. K Bell who, having was assigned a lease of a basement apartment in Rugby in September 2005. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical residencies in Rugby with a long lease were valued about £166,400. The average amount of ground rent was £60 billed quarterly. The lease concluded in 2080. Taking into account 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 not including costs.
Last Winter we were e-mailed by Mr and Mrs. L David , who moved into a garden flat in Rugby in June 2003. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar properties in Rugby with a long lease were valued about £227,800. The average amount of ground rent was £45 invoiced quarterly. The lease finished on 19 April 2091. Having 65 years remaining we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.