Unfortunately that a Robertsbridge residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Robertsbridge property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term falls under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Robertsbridge 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 be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Robertsbridge with in excess of 100 years outstanding 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Using our service will provide 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 decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Sam was the the leasehold proprietor of a conversion apartment in Robertsbridge on the market with a lease of a few days over fifty eight years left. Sam on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Sam to exercise his statutory right. Sam procured expert advice and secured satisfactory deal informally and readily saleable.
In 2010 we were approached by Mr and Mrs. G James who, having purchased a newly refurbished apartment in Robertsbridge in October 2010. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable residencies in Robertsbridge with 100 year plus lease were worth £193,400. The mid-range amount of ground rent was £65 billed yearly. The lease expired in 2084. Taking into account 59 years outstanding we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of costs.
Mr S Gray completed a newly refurbished apartment in Robertsbridge in October 1999. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Robertsbridge with an extended lease were worth £250,000. The mid-range ground rent payable was £50 billed every twelve months. The lease finished in 2095. Considering the 70 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.