Rushden leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Rushden will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Rushden with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Rushden,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rushden valuers.
Henry owned a high value apartment in Rushden on the market with a lease of a few days over fifty eight years unexpired. Henry informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Last month we were approach by Mr Jason Girard , who bought a one bedroom flat in Rushden in September 2004. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparable premises in Rushden with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed in 2084. Given that there were 59 years left we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of expenses.
Last Autumn we were approach by Mrs K Anderson , who bought a purpose-built flat in Rushden in March 1998. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Rushden with an extended lease were worth £255,000. The average amount of ground rent was £50 billed annually. The lease ended in 2095. Given that there were 70 years remaining we approximated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 not including professional charges.