Ruddington leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease falls below eighty years - otherwise a higher premium will be payable. Leasehold owners in Ruddington will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Ruddington with in excess of one hundred years remaining on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
The conveyancing solicitors that we work with procure Ruddington 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.
Off the back of unsuccessful correspondence with the landlord of her studio flat in Ruddington, Imogen commenced the lease extension process as the eighty year mark was fast approaching. The transaction was concluded in March 2008. The freeholder’s fees were negotiated to a tad over 600 pounds.
Last Winter we were called by Dr George Bertrand , who moved into a one bedroom apartment in Ruddington in August 1999. We are asked if we could estimate the price would be for a ninety year lease extension. Identical flats in Ruddington with a long lease were valued about £260,200. The average amount of ground rent was £65 billed per annum. The lease finished in 2092. Given that there were 66 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of legals.
Last Summer we were contacted by Mr R Sharif , who purchased a first floor flat in Ruddington in November 2001. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative residencies in Ruddington with a long lease were in the region of £198,800. The average amount of ground rent was £55 invoiced monthly. The lease ended on 9 November 2081. Taking into account 55 years left we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including costs.