Robertsbridge leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Robertsbridge enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Robertsbridge you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Robertsbridge,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Robertsbridge valuers.
Last Winter Benjamin, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Robertsbridge. Having purchased his property twenty years ago, the unexpired term was of minimal relevance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Benjamin arranged for a lease extension just under the wire in March. Benjamin and the landlord eventually settled on the final figure of £6,000 . If the lease had slid below 80 years, the amount would have escalated by a minimum £1,025.
Mr and Mrs. I Harris moved into a newly refurbished flat in Robertsbridge in October 2002. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparable flats in Robertsbridge with a long lease were valued about £270,000. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed on 8 June 2100. Considering the 75 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
In 2013 we were called by Dr Joseph Lambert who, having acquired a garden flat in Robertsbridge in May 2002. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Similar flats in Robertsbridge with an extended lease were in the region of £168,800. The mid-range ground rent payable was £60 invoiced monthly. The lease ran out in 2080. Given that there were 55 years left we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.