Rumney leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Rumney will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Rumney with over 100 years remaining on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Halifax | |
| Leeds Building Society |
Using our service gives you increased control over the value of your Rumney leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Teddy was the the leasehold proprietor of a 2 bedroom flat in Rumney being marketed with a lease of fraction over 59 years remaining. Teddy on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Last month we were contacted by Mr and Mrs. W Morel , who owned a studio flat in Rumney in May 2007. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparable residencies in Rumney with 100 year plus lease were valued around £233,200. The average amount of ground rent was £60 billed quarterly. The lease elapsed in 2087. Considering the 61 years unexpired we calculated the premium to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of professional charges.
Last Spring we were phoned by Mr and Mrs. A Dupont , who was assigned a lease of a first floor flat in Rumney in October 1995. The question was if we could estimate the price would be to extend the lease by a further 90 years. Identical flats in Rumney with an extended lease were worth £166,800. The mid-range amount of ground rent was £50 collected per annum. The lease terminated in 2076. Considering the 50 years outstanding we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including fees.