As the the remaining lease term of a Rawcliffe domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Rawcliffe will meet the qualifying criteria; however a conveyancer should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Rawcliffe with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with handle Rawcliffe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of eight months of unsuccessful correspondence with the landlord of her leasehold apartment in Rawcliffe, Catherine commenced the lease extension process just as her lease was nearing the crucial 80-year threshold. The legal work was concluded in October 2005. The landlord’s charges were negotiated to less than 650 pounds.
In 2009 we were called by Mr C Harris who, having was assigned a lease of a one bedroom flat in Rawcliffe in August 1997. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparable residencies in Rawcliffe with a long lease were valued around £267,600. The average ground rent payable was £65 invoiced annually. The lease ended on 23 August 2091. Considering the 67 years left we estimated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus professional charges.
Last Autumn we were approach by Ms F Flores , who completed a basement apartment in Rawcliffe in September 1999. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Rawcliffe with a long lease were in the region of £201,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease concluded on 16 October 2080. Having 56 years remaining we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.