There is no doubt about it a leasehold property in Rusholm is a wasting asset as a result of the shortening lease. If the lease has, in excess of one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Rusholm will meet the qualifying criteria; however a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Rusholm,the lease extension lawyers 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.
Caleb was the the leasehold proprietor of a studio apartment in Rusholm being marketed with a lease of a few days over 59 years remaining. Caleb on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Caleb to invoke his statutory right. Caleb procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Mr Ollie Leroy acquired a purpose-built flat in Rusholm in March 2002. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable residencies in Rusholm with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease termination date was on 26 April 2097. Given that there were 71 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.
Last Spring we were phoned by Dr E Mitchell , who was assigned a lease of a studio flat in Rusholm in October 2008. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical flats in Rusholm with 100 year plus lease were in the region of £225,800. The average amount of ground rent was £60 billed annually. The lease expired on 9 January 2086. Considering the 60 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus legals.