For those whose Rhuddlan flat is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Rhuddlan leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ollie owned a high value flat in Rhuddlan being marketed with a lease of just over sixty years left. Ollie on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ollie to exercise his statutory right. Ollie procured expert advice and secured satisfactory resolution informally and readily saleable.
Mr S Ramírez owned a newly refurbished flat in Rhuddlan in November 1996. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar properties in Rhuddlan with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 collected yearly. The lease ran out on 28 September 2093. Taking into account 67 years outstanding we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 not including costs.
Last Christmas we were phoned by Mr and Mrs. N Wood , who purchased a studio apartment in Rhuddlan in October 2010. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Identical residencies in Rhuddlan with 100 year plus lease were worth £201,200. The average amount of ground rent was £55 collected monthly. The lease came to a finish on 24 July 2082. Having 56 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.