Rumney leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be payable. Flat owners in Rumney will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rumney can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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.
Seth was the the leasehold proprietor of a 2 bedroom apartment in Rumney being marketed with a lease of a little over fifty eight years left. Seth informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Seth to invoke his statutory right. Seth obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2011 we were e-mailed by Mr Gabriel Mercier who, having purchased a studio apartment in Rumney in November 2007. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical flats in Rumney with 100 year plus lease were valued around £267,600. The average ground rent payable was £65 billed per annum. The lease ended on 3 October 2092. Having 67 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.
Last Spring we were approach by Ms F Díaz , who took over the lease of a ground floor flat in Rumney in October 2010. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Identical premises in Rumney with a long lease were valued around £201,200. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2081. Having 56 years remaining we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.