Ruabon leases on residential properties are gradually losing 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. The majority of owners of residential leasehold property in Ruabon enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Ruabon you should see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Ruabon leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Ruabon with more than 100 years remaining 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Ruabon,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 experience and the close ties they enjoy with Ruabon valuers.
Trailing unsuccessful correspondence with the freeholder of her ground floor apartment in Ruabon, Samantha commenced the lease extension process as the 80 year deadline was quickly approaching. The lease extension was concluded in May 2010. The landlord’s fees were kept to an absolute minimum.
In 2009 we were e-mailed by Mr and Mrs. T Simon who, having took over the lease of a one bedroom apartment in Ruabon in July 2009. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar residencies in Ruabon with a long lease were in the region of £300,000. The average amount of ground rent was £50 invoiced annually. The lease came to a finish in 2101. Given that there were 76 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last year we were contacted by Mr and Mrs. K Dupont , who took over the lease of a one bedroom apartment in Ruabon in June 1996. The question was if we could estimate the premium would be for a ninety year lease extension. Similar premises in Ruabon with an extended lease were valued about £257,800. The average ground rent payable was £65 invoiced per annum. The lease came to a finish in 2090. Given that there were 65 years remaining we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus fees.