Rusholm leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher premium will be payable. Leasehold owners in Rusholm will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are prescribed timetables and procedures to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Rusholm with over 100 years unexpired 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 service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service gives you increased control over the value of your Rusholm leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Harry, started to get near to the 80-year mark with the lease on his ground floor flat in Rusholm. In buying his home two decades ago, the length of the lease was of no importance. Luckily, he noticed he would soon be paying an escalated premium for a lease extension. Harry extended the lease just in the nick of time last January. Harry and the freeholder ultimately settled on sum of £5,000 . If he failed to meet the deadline, the price would have become more costly by at least £925.
In 2014 we were contacted by Mr and Mrs. D Díaz who, having moved into a one bedroom apartment in Rusholm in August 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Rusholm with 100 year plus lease were in the region of £191,400. The average ground rent payable was £55 collected yearly. The lease expired in 2080. Given that there were 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 not including expenses.
Last Spring we were phoned by Dr R Roberts , who was assigned a lease of a purpose-built flat in Rusholm in November 1998. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable homes in Rusholm with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 billed monthly. The lease ran out in 2100. Given that there were 74 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.