As the length of the unexpired term of a Rugeley residential lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Rugeley will qualify for this right; nevertheless a conveyancer can confirm whether you qualify 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 Rugeley with over one hundred years unexpired 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
Lease extensions in Rugeley can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Rugeley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aaron was the the leasehold owner of a 2 bedroom apartment in Rugeley being sold with a lease of a little over 59 years remaining. Aaron informally approached his freeholder being a well known London-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 to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aaron to invoke his statutory right. Aaron procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
In 2011 we were e-mailed by Mr C García who, having acquired a basement apartment in Rugeley in September 2008. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar residencies in Rugeley with a long lease were in the region of £186,000. The average ground rent payable was £65 invoiced quarterly. The lease elapsed in 2084. Given that there were 58 years left we approximated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 plus legals.
In 2010 we were e-mailed by Mr and Mrs. T Lambert who, having completed a basement flat in Rugeley in May 2003. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical premises in Rugeley with an extended lease were in the region of £250,000. The average ground rent payable was £50 collected every twelve months. The lease terminated in 2095. Considering the 69 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.