Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Robertsbridge. Clearly, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Robertsbridge have the right to extend the lease for a further ninety years in accordance with legislation. Please give careful consideration before putting off your Robertsbridge lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Robertsbridge with in excess of 100 years remaining 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 reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Engaging our service gives you increased control over the value of your Robertsbridge leasehold, as your property will be more valuable and saleable in respect of lease length should you wish 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.
Aiden was the the leasehold owner of a conversion apartment in Robertsbridge on the market with a lease of fraction over 72 years remaining. Aiden on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Dr Natalie Wood purchased a ground floor apartment in Robertsbridge in January 2004. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Identical premises in Robertsbridge with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease concluded on 27 April 2086. Given that there were 60 years remaining we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including legals.
In 2013 we were contacted by Mr and Mrs. W Nelson who, having owned a garden flat in Robertsbridge in April 2003. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar properties in Robertsbridge with an extended lease were valued around £255,000. The average amount of ground rent was £50 collected quarterly. The lease expired on 3 February 2097. Having 71 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.