When it comes to long leasehold premises in Rusholm, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Anyone in Rusholm with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has below eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Rusholm with over one hundred years outstanding on the lease are often regarded as a ‘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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Rusholm can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 dealing with Rusholm lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months William, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Rusholm. In buying his property two decades ago, the unexpired term was of minimal bearing. As luck would have it, he recognised he needed to take steps soon on a lease extension. William extended the lease just in the nick of time in May. William and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If he not met the deadline, the premium would have gone up by at least £1,075.
Last Autumn we were approach by Mrs Jordan Brooks , who completed a one bedroom apartment in Rusholm in March 2000. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical residencies in Rusholm with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 invoiced annually. The lease finished in 2089. Given that there were 64 years left we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus professional charges.
Mr and Mrs. K Davis moved into a studio apartment in Rusholm in January 2001. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Rusholm with 100 year plus lease were in the region of £189,000. The mid-range amount of ground rent was £55 billed monthly. The lease expired on 4 March 2078. Considering the 53 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.