Chances are that if you own a flat in Rugeley you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Rugeley leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the freeholder of her two bedroom apartment in Rugeley, Jade commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The lease extension completed in October 2006. The freeholder’s charges were restricted to approximately 600 pounds.
Last Autumn we were e-mailed by Dr Riley González , who purchased a one bedroom apartment in Rugeley in October 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Rugeley with a long lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed on 27 July 2085. Taking into account 60 years left we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 not including legals.
Mr I Taylor took over the lease of a ground floor apartment in Rugeley in May 1998. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical flats in Rugeley with a long lease were valued around £255,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed in 2096. Considering the 71 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.