There is no doubt about it a leasehold flat or house in Rumney is a wasting asset as a result of the shortening lease. Where the lease has, more than 125 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Rumney will qualify for this right; however a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Rumney with over 100 years left 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rumney can be a difficult process. We recommend you secure professional help from a lawyer 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 Rumney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter owned a high value apartment in Rumney being sold with a lease of just over fifty eight years left. Dexter informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. C Wilson acquired a one bedroom flat in Rumney in August 2008. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Rumney with an extended lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced annually. The lease came to a finish in 2088. Given that there were 63 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including expenses.
In 2009 we were called by Mrs Rachel Hall who, having purchased a garden apartment in Rumney in June 2005. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Identical residencies in Rumney with an extended lease were valued around £181,600. The average amount of ground rent was £55 invoiced quarterly. The lease concluded in 2077. Taking into account 52 years unexpired we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.