Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Rushden. Clearly, the period of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Rushden have the right to extend the lease for a further 90 years under legislation. You should give careful deliberation before delaying your Rushden lease extension. Holding off the cost now likely increases the price you will eventually have to pay to extend your lease
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Halifax | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland |
Lease extensions in Rushden can be a difficult process. We recommend you obtain guidance from a lawyer 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 Rushden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Milo, started to get close to the eighty-year mark with the lease on his first floor apartment in Rushden. Having purchased his property twenty years previously, the unexpired term was of no significance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Milo was able to extend his lease at the eleventh hour in July. Milo and the landlord ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the sum would have gone up by at least £1,075.
Last year we were e-mailed by Mr H Hill , who acquired a newly refurbished flat in Rushden in May 2010. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparable properties in Rushden with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease end date was in 2106. Given that there were 80 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Mr Y Gómez took over the lease of a purpose-built apartment in Rushden in June 2010. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar flats in Rushden with an extended lease were valued around £200,800. The mid-range ground rent payable was £65 collected monthly. The lease finished in 2086. Having 60 years remaining we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including fees.