Rush Green leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Rush Green residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Rush Green you should investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you better control over the value of your Rush Green leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Gabriel, started to get close to the 80-year mark with the lease on his garden flat in Rush Green. Having purchased his home 19 years previously, the unexpired term was of little bearing. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Gabriel was able to extend his lease just in the nick of time in September. Gabriel and the landlord subsequently settled on an amount of £5,000 . If he failed to meet the deadline, the amount would have increased by a minimum £850.
Last month we were e-mailed by Mr and Mrs. N Flores , who owned a one bedroom apartment in Rush Green in May 2003. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar premises in Rush Green with a long lease were valued around £257,800. The mid-range ground rent payable was £65 invoiced per annum. The lease concluded in 2091. Considering the 65 years unexpired we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus professional charges.
An example of a Lease Extension case for a Rush Green premises 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 lease term was 57.5 years.