The re-sale value of a leasehold property in Rednal depends on how long the lease has left to run. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded ahead of the eighty year threshold. Current legislation entitles Rednal qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Rednal with more than 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 to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Rednal 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.
Off the back of unsuccessful negotiations with the freeholder of her garden flat in Rednal, Rosie commenced the lease extension process just as her lease was approaching the all-important 80-year threshold. The legal work was finalised in January 2014. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. E Thomas was assigned a lease of a one bedroom flat in Rednal in September 1995. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative properties in Rednal with a long lease were worth £208,600. The mid-range ground rent payable was £60 collected annually. The lease concluded on 2 July 2083. Given that there were 57 years unexpired we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus professional charges.
In 2011 we were approached by Dr Jacob Rogers who, having bought a purpose-built apartment in Rednal in April 2012. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative flats in Rednal with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease lapsed in 2103. Considering the 77 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.