The re-sale value of a leasehold property in Rumney depends on how long the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be finalised prior to the 80 year cut off point. Statute enables Rumney qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a nominal rent (no ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Rumney with over 100 years outstanding 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 procure professional help from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience procuring Rumney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Zachary, came perilously near to the 80-year mark with the lease on his one bedroom flat in Rumney. Having purchased his property two decades ago, the length of the lease was of minimal bearing. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Zachary extended the lease just ahead of time last August. Zachary and the landlord eventually agreed on sum of £5,500 . If he had missed the deadline, the figure would have escalated by a minimum £1,050.
In 2010 we were called by Mr and Mrs. N Lefèvre who, having was assigned a lease of a purpose-built apartment in Rumney in May 2008. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative residencies in Rumney with an extended lease were valued around £201,200. The mid-range amount of ground rent was £55 billed quarterly. The lease terminated in 2082. Considering the 56 years left we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
In 2009 we were e-mailed by Dr I Young who, having owned a purpose-built apartment in Rumney in November 2001. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparative flats in Rumney with an extended lease were valued about £300,000. The average amount of ground rent was £50 invoiced every twelve months. The lease elapsed on 15 February 2102. Given that there were 76 years unexpired we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.