Rhuddlan leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Rhuddlan enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Rhuddlan you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Rhuddlan with more than one hundred years left 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 buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Rhuddlan,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rhuddlan valuers.
During the course of the last few months Freddie, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Rhuddlan. In buying his home twenty years ago, the length of the lease was of minimal relevance. As luck would have it, he recognised he would imminently be paying an inflated amount for Extending the lease. Freddie extended the lease just ahead of time last July. Freddie and the landlord ultimately agreed on a premium of £5,000 . If the lease had dipped to less than eighty years, the premium would have increased by a minimum £900.
Last Autumn we were contacted by Mrs Anna Howard , who was assigned a lease of a purpose-built apartment in Rhuddlan in April 1995. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in Rhuddlan with an extended lease were in the region of £225,800. The average amount of ground rent was £60 collected annually. The lease termination date was on 17 September 2086. Having 60 years remaining we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of costs.
In 2013 we were contacted by Mr and Mrs. V Simon who, having moved into a basement apartment in Rhuddlan in October 2006. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Identical residencies in Rhuddlan with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 billed quarterly. The lease came to a finish in 2106. Taking into account 80 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.