The re-sale value of a leasehold property in Ruabon is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised well before the 80 year mark. Leasehold Reform legislation enables Ruabon qualifying lessees to an additional term of 90 years on top of the remaining term, at a peppercorn rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Ruabon with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors that we work with handle Ruabon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Harrison was the the leasehold proprietor of a high value apartment in Ruabon on the market with a lease of just over fifty eight years remaining. Harrison on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and secured satisfactory resolution informally and readily saleable.
Mr and Mrs. K Martínez moved into a basement apartment in Ruabon in November 2009. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar residencies in Ruabon with 100 year plus lease were worth £265,200. The average amount of ground rent was £65 invoiced yearly. The lease expired on 21 November 2092. Taking into account 66 years outstanding we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus professional charges.
In 2013 we were contacted by Ms Sarah Nelson who, having was assigned a lease of a basement apartment in Ruabon in February 2011. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparative properties in Ruabon with an extended lease were valued about £198,800. The average amount of ground rent was £55 billed yearly. The lease expired on 27 January 2081. Taking into account 55 years remaining we calculated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including expenses.