Rumney leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Rumney will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| Halifax | |
| Leeds Building Society |
Lease extensions in Rumney can be a difficult process. We recommend you obtain guidance from a conveyancer 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.
Jake was the the leasehold owner of a studio flat in Rumney on the market with a lease of just over 59 years unexpired. Jake on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Dr Rachael Collins purchased a garden flat in Rumney in September 2009. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable homes in Rumney with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 invoiced annually. The lease expired in 2083. Taking into account 57 years unexpired we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus fees.
Dr Sam Allen owned a one bedroom flat in Rumney in February 2008. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable properties in Rumney with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired in 2103. Considering the 77 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.