Ruddington 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 the lease becomes more expensive. It is the case that most Ruddington tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Ruddington you really ought to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Ruddington leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Nationwide Building Society | |
| Santander | |
| TSB | |
| The Mortgage Works | |
| Virgin |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
After lengthy negotiations with the landlord of her first floor apartment in Ruddington, Sarah commenced the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was finalised in May 2014. The freeholder’s costs were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. K White , who moved into a purpose-built apartment in Ruddington in July 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Ruddington with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed yearly. The lease finished in 2097. Given that there were 71 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.
Ms Freya Reed was assigned a lease of a ground floor flat in Ruddington in October 1995. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Similar residencies in Ruddington with a long lease were valued around £225,800. The average amount of ground rent was £60 collected every twelve months. The lease expired on 24 February 2086. Having 60 years remaining we approximated the compensation to the freeholder for the lease extension to be between £25,700 and £29,600 plus legals.