As the length of the unexpired term of a Rumney residential lease diminished so does its value and therefore the value of your property. If the lease has, over 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. Many flat owners in Rumney will qualify for this right; that being said a lawyer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Rumney with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Rumney,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rumney valuers.
Noah owned a high value apartment in Rumney being marketed with a lease of just over 61 years outstanding. Noah on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Noah to exercise his statutory right. Noah obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Dr I Jackson took over the lease of a one bedroom apartment in Rumney in October 1999. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar premises in Rumney with an extended lease were worth £210,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed on 23 January 2106. Considering the 80 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.
Mrs A Murphy moved into a first floor apartment in Rumney in February 1997. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Rumney with 100 year plus lease were valued about £275,000. The average amount of ground rent was £45 collected quarterly. The lease came to a finish in 2095. Given that there were 69 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.