With a long leasehold premises in Rumney, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Leasehold owners in Rumney with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When a lease has fewer than eighty years outstanding, under the relevant legislation the landlord can calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Rumney with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Rumney can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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.
James owned a 2 bedroom apartment in Rumney being marketed with a lease of a few days over sixty years left. James on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were James to invoke his statutory right. James procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Last Spring we were phoned by Mr and Mrs. A Sharif , who owned a ground floor flat in Rumney in November 2009. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar flats in Rumney with a long lease were worth £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease termination date was in 2094. Given that there were 68 years left we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
Last Autumn we were contacted by Mr Theo Phillips , who moved into a garden apartment in Rumney in June 1999. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Rumney with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 invoiced yearly. The lease expiry date was on 23 May 2083. Considering the 57 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus costs.