The value of Ruabon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is below than 80 years
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Ruabon leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Muhammad, started to get close to the eighty-year mark with the lease on his basement flat in Ruabon. In buying his home twenty years ago, the lease term was of no bearing. Thankfully, he noticed he would imminently be paying an inflated amount for Extending the lease. Muhammad was able to extend his lease just in the nick of time last April. Muhammad and the freeholder via the management company subsequently agreed on a premium of £6,000 . If he failed to meet the deadline, the amount would have become more costly by at least £1,000.
Last Winter we were phoned by Ms Niamh Vincent , who moved into a basement apartment in Ruabon in May 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Ruabon with 100 year plus lease were valued around £181,600. The mid-range amount of ground rent was £55 invoiced per annum. The lease finished in 2078. Given that there were 52 years outstanding we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.
In 2012 we were approached by Mr William Reed who, having purchased a first floor flat in Ruabon in August 2003. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Ruabon with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 collected yearly. The lease concluded on 23 April 2098. Given that there were 72 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of costs.