The value of Rhuddlan leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is below than eighty years
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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 |
| 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 conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience 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, came dangerously close to the eighty-year mark with the lease on his first floor flat in Rhuddlan. Having purchased his property 19 years previously, the lease term was of little importance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Austin was able to extend his lease at the eleventh hour in June. Austin and the landlord eventually agreed on sum of £6,000 . If the lease had slid below eighty years, the sum would have increased by at least £1,100.
Last Spring we were phoned by Mr and Mrs. I Pérez , who owned a studio apartment in Rhuddlan in September 2006. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Rhuddlan with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 collected quarterly. The lease expired in 2095. Considering the 69 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Last Winter we were contacted by Mr and Mrs. D Jackson , who took over the lease of a purpose-built apartment in Rhuddlan in October 2005. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Identical properties in Rhuddlan with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 billed quarterly. The lease ended in 2084. Given that there were 58 years left we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.