There is no doubt about it a leasehold flat or house in Rowen is a wasting asset as a result of the shortening lease. Where the residual term has, over one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Rowen will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Rowen,the lease extension experts 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 Rowen valuers.
Subsequent to lengthy correspondence with the freeholder of her leasehold apartment in Rowen, Emma initiated the lease extension process just as the lease was nearing the critical 80-year threshold. The transaction completed in August 2011. The landlord’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Ms Rosie Moreau who, having acquired a garden apartment in Rowen in September 2003. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar flats in Rowen with an extended lease were worth £240,600. The average ground rent payable was £60 billed every twelve months. The lease expired on 14 November 2086. Considering the 62 years remaining we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
Last Spring we were approach by Mrs F Gómez , who was assigned a lease of a one bedroom apartment in Rowen in February 2009. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparable residencies in Rowen with a long lease were valued about £174,200. The mid-range amount of ground rent was £55 invoiced quarterly. The lease finished on 2 June 2075. Considering the 51 years unexpired we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including fees.