The re-sale value of a leasehold property in South Ruislip is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the lease extension process when a lease still has 82 years to run so that a lease extension can be concluded well before the eighty year mark. Leasehold Reform legislation entitles South Ruislip qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in South Ruislip with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
Lender | Requirement |
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Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Halifax | Minimum 70 years from the date of the mortgage. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
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. |
The conveyancers that we work with handle South Ruislip lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Twenty four months ago Elijah, came precariously near to the 80-year threshold with the lease on his studio apartment in South Ruislip. Having bought his home two decades ago, the unexpired term was of minimal importance. Luckily, he noticed he needed to take action soon on Extending the lease. Elijah was able to extend his lease at the eleventh hour in September. Elijah and the freeholder eventually settled on an amount of £5,500 . If he failed to meet the deadline, the price would have increased by at least £1,150.
In 2011 we were phoned by Dr U Nguyen who, having took over the lease of a recently refurbished flat in South Ruislip in May 2004. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in South Ruislip with an extended lease were valued around £225,400. The average amount of ground rent was £45 invoiced per annum. The lease concluded on 13 November 2088. Considering the 64 years remaining we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus fees.
An example of a Lease Extension case for a South Ruislip premises is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case related to 1 flat. The unexpired residue of the current lease was 53.26 years.