It’s a harsh certainty that a Rushden residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Rushden property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. Most flat owners in Rushden will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Rushden with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Halifax | |
| Leeds Building Society | |
| Santander | |
| The Mortgage Works |
Regardless of whether you are a tenant or a landlord in Rushden,the lease extension experts 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 Rushden valuers.
Two years ago Tommy, came seriously close to the eighty-year mark with the lease on his leasehold flat in Rushden. Having purchased his home twenty years ago, the length of the lease was of no relevance. Fortunately, he noticed he would soon be paying an escalated premium for Extending the lease. Tommy arranged for a lease extension at the eleventh hour in May. Tommy and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had gone to less than 80 years, the premium would have escalated by a minimum £1,075.
Last Autumn we were approach by Mr Charlie Turner , who acquired a purpose-built flat in Rushden in May 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar residencies in Rushden with a long lease were worth £245,000. The average amount of ground rent was £50 billed per annum. The lease elapsed on 13 May 2094. Given that there were 68 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Christmas we were phoned by Dr R Turner , who bought a basement flat in Rushden in August 2012. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Identical residencies in Rushden with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease terminated in 2105. Given that there were 79 years unexpired we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.