Rumney leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease falls lower than eighty years - otherwise a higher premium will be due. Flat owners in Rumney will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Rumney with in excess of one hundred 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rumney can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 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.
Gabriel owned a conversion flat in Rumney being sold with a lease of fraction over 61 years outstanding. Gabriel on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert advice and secured an acceptable resolution informally and readily saleable.
In 2012 we were phoned by Mr and Mrs. H Phillips who, having was assigned a lease of a one bedroom flat in Rumney in August 1997. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Similar homes in Rumney with a long lease were worth £191,400. The average ground rent payable was £55 billed every twelve months. The lease concluded on 17 April 2080. Considering the 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 not including legals.
Mr Elijah González owned a one bedroom flat in Rumney in May 2009. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar homes in Rumney with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed quarterly. The lease ran out in 2100. Having 74 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.