The re-sale value of a leasehold property in Rugeley is impacted by how long the lease has left to run. If it is near to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that all matters can be addressed ahead of the 80 year cut off point. Current legislation enables Rugeley qualifying lessees to an additional term of ninety years on top of the unexpired term, at a nominal rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Rugeley with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you increased control over the value of your Rugeley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the freeholder of her purpose-built apartment in Rugeley, Chelsea started the lease extension process just as the lease was coming close to the all-important 80-year mark. The transaction completed in September 2009. The landlord’s fees were kept to an absolute minimum.
Mr Gabriel Vincent took over the lease of a first floor apartment in Rugeley in March 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Rugeley with an extended lease were worth £285,000. The mid-range ground rent payable was £55 billed yearly. The lease concluded in 2104. Taking into account 79 years left we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.
Mr and Mrs. K Kelly moved into a one bedroom flat in Rugeley in August 2000. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Rugeley with a long lease were in the region of £193,400. The mid-range amount of ground rent was £65 collected per annum. The lease ran out in 2084. Considering the 59 years left we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of fees.