The nearer a domestic lease in Rugeley gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 99 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Rugeley will meet the qualifying criteria; that being said a conveyancer should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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 also be not less than 75 years 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. |
Lease extensions in Rugeley can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 in-depth market knowledge dealing with Rugeley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the landlord of her two bedroom apartment in Rugeley, Hollie started the lease extension process as the 80 year deadline was swiftly nearing. The legal work completed in May 2013. The landlord’s costs were restricted to less than 450 pounds.
Last year we were e-mailed by Dr N Edwards , who owned a basement flat in Rugeley in September 1998. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar flats in Rugeley with 100 year plus lease were valued about £237,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease concluded on 22 July 2092. Given that there were 67 years as a residual term we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including professional charges.
In 2011 we were contacted by Mr and Mrs. E Green who, having bought a ground floor flat in Rugeley in September 2002. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Comparative properties in Rugeley with a long lease were in the region of £280,000. The average ground rent payable was £55 billed monthly. The lease ended in 2103. Taking into account 78 years outstanding we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.