For those whose Rawcliffe property is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
Leasehold properties in Rawcliffe with in excess of 100 years unexpired 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 freehold unless savings on ground rent and maintenance charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Rawcliffe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rawcliffe valuers.
Aarav owned a 2 bedroom apartment in Rawcliffe being marketed with a lease of fraction over 72 years left. Aarav informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Aarav to invoke his statutory right. Aarav procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
Last April we were phoned by Mrs Kelsey Ali , who owned a one bedroom apartment in Rawcliffe in September 2003. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Rawcliffe with an extended lease were valued about £295,000. The mid-range ground rent payable was £45 invoiced yearly. The lease expired on 9 February 2100. Given that there were 75 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
Dr G Leroy was assigned a lease of a garden flat in Rawcliffe in November 2009. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparable flats in Rawcliffe with a long lease were valued around £250,400. The mid-range ground rent payable was £65 invoiced monthly. The lease expiry date was on 5 May 2089. Taking into account 64 years unexpired we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus fees.