Rusholm leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. Leasehold owners in Rusholm will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a landlord in Rusholm,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rusholm valuers.
Last year Adam, came precariously near to the 80-year threshold with the lease on his studio apartment in Rusholm. Having purchased his flat two decades ago, the unexpired term was of minimal importance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Adam was able to extend his lease just under the wire last April. Adam and the freeholder via the management company eventually agreed on sum of £5,000 . If the lease had gone to less than eighty years, the amount would have increased by at least £1,125.
Last May we were contacted by Mrs Abigail Cook , who moved into a newly refurbished apartment in Rusholm in October 2010. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar flats in Rusholm with a long lease were in the region of £260,200. The average ground rent payable was £65 billed annually. The lease elapsed on 16 April 2092. Taking into account 66 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including fees.
Last July we were called by Mrs U Davies , who moved into a first floor apartment in Rusholm in February 1996. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical properties in Rusholm with a long lease were in the region of £198,800. The average amount of ground rent was £55 invoiced annually. The lease expired in 2081. Having 55 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus costs.