Rumney leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Rumney residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Rumney you should investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Rumney flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Rumney,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rumney valuers.
In the wake of 6 months of protracted discussions with the landlord of her purpose-built apartment in Rumney, Lily initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction was concluded in August 2005. The freeholder’s fees were kept to an absolute minimum.
Last year we were e-mailed by Dr George Jones , who owned a one bedroom flat in Rumney in October 2001. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative residencies in Rumney with a long lease were valued about £240,600. The average ground rent payable was £60 collected quarterly. The lease concluded in 2088. Having 62 years remaining we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus costs.
In 2009 we were contacted by Dr A Cox who, having bought a basement apartment in Rumney in November 2001. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative residencies in Rumney with a long lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease elapsed on 27 February 2077. Taking into account 51 years left we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.