Rush Green leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Rush Green residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Rush Green you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Rush Green with more than one hundred years outstanding 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 home. In such situations there is often little upside in buying the freehold 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rush Green can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Rush Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Joshua, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Rush Green. In buying his flat two decades ago, the lease term was of no bearing. As luck would have it, he recognised he would imminently be paying an escalated premium for a lease extension. Joshua extended the lease at the eleventh hour in April. Joshua and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If he had missed the deadline, the sum would have become more costly by at least £1,100.
In 2012 we were approached by Mr Harvey Mitchell who, having bought a purpose-built flat in Rush Green in February 2001. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable properties in Rush Green with a long lease were valued around £285,000. The average ground rent payable was £45 invoiced every twelve months. The lease expired on 10 May 2096. Taking into account 71 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.
An example of a Lease Extension case for a Rush Green property is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case was in relation to 1 flat. The unexpired term was 57.5 years.