Robertsbridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Robertsbridge residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Robertsbridge you should see if your lease has between seventy and 90 years left. There are good reasons why a Robertsbridge flat owner with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
Leasehold properties in Robertsbridge with more than one hundred years unexpired on the lease are sometimes 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 reversionary interest unless savings on ground rent and service 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Robertsbridge can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Robertsbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the landlord of her purpose-built apartment in Robertsbridge, Lily initiated the lease extension process as the eighty year threshold was swiftly nearing. The legal work was finalised in September 2005. The landlord’s charges were kept to an absolute minimum.
In 2010 we were contacted by Ms Danielle Roux who, having purchased a purpose-built flat in Robertsbridge in March 2007. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparable premises in Robertsbridge with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease expired on 18 May 2078. Having 54 years left we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.
Mr and Mrs. A Mercier was assigned a lease of a purpose-built flat in Robertsbridge in August 2008. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Robertsbridge with 100 year plus lease were in the region of £227,800. The average ground rent payable was £45 billed monthly. The lease lapsed on 3 January 2089. Given that there were 65 years unexpired we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.