Unfortunately that a Rusholme residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Rusholme property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining falls below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Rusholme will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Rusholme,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 Rusholme valuers.
Gabriel owned a conversion flat in Rusholme on the market with a lease of fraction over 59 years unexpired. Gabriel informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last year we were e-mailed by Mrs Kayleigh Gómez , who acquired a garden flat in Rusholme in May 2011. The question was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparative residencies in Rusholme with an extended lease were worth £280,000. The mid-range ground rent payable was £55 billed annually. The lease concluded on 18 March 2104. Given that there were 78 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.
Last Winter we were e-mailed by Mr Alexander Garcia , who moved into a purpose-built flat in Rusholme in January 2012. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar premises in Rusholme with 100 year plus lease were in the region of £191,000. The average amount of ground rent was £65 invoiced yearly. The lease concluded in 2084. Given that there were 58 years outstanding we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including legals.