Rhuddlan leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Rhuddlan will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rhuddlan can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 dealing with Rhuddlan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Austin, started to get near to the eighty-year mark with the lease on his first floor apartment in Rhuddlan. In buying his home twenty years ago, the lease term was of little significance. Luckily, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Austin arranged for a lease extension just under the wire last July. Austin and the landlord who owned the flat above eventually settled on a premium of £5,500 . If he not met the deadline, the sum would have escalated by a minimum £1,000.
In 2011 we were approached by Dr A Brooks who, having owned a basement apartment in Rhuddlan in August 2009. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative homes in Rhuddlan with an extended lease were worth £295,000. The average amount of ground rent was £45 collected monthly. The lease lapsed on 6 April 2099. Considering the 74 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
Last month we were approach by Mr and Mrs. A Turner , who acquired a first floor apartment in Rhuddlan in June 1996. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable homes in Rhuddlan with 100 year plus lease were valued around £243,000. The average ground rent payable was £65 invoiced monthly. The lease expired in 2088. Taking into account 63 years left we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including costs.