Chances are that if you own a flat in Rumney you actually own a long leasehold interest over your property
Leasehold premises in Rumney with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rumney can be a difficult process. We recommend you obtain professional help from a conveyancer 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.
Off the back of protracted correspondence with the freeholder of her two bedroom flat in Rumney, Lydia started the lease extension process as the eighty year deadline was fast coming. The lease extension was finalised in April 2013. The freeholder’s fees were negotiated to below 550 GBP.
In 2009 we were phoned by Mr M Moreau who, having owned a first floor apartment in Rumney in January 2001. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Identical flats in Rumney with a long lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated on 14 April 2080. Taking into account 55 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including costs.
Last Spring we were contacted by Dr I Lee , who completed a garden apartment in Rumney in August 2012. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative flats in Rumney with 100 year plus lease were worth £295,000. The average ground rent payable was £50 billed per annum. The lease terminated in 2100. Considering the 75 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.