Ruddington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Ruddington residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ruddington you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Ruddington with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancing solicitors 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.
Two years ago Ibrahim, started to get near to the 80-year mark with the lease on his one bedroom flat in Ruddington. Having bought his property twenty years ago, the lease term was of little bearing. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Ibrahim extended the lease just in the nick of time last April. Ibrahim and the freeholder via the management company subsequently settled on sum of £6,000 . If the lease had descended lower than eighty years, the figure would have gone up by a minimum £1,025.
Last April we were approach by Mr U Nguyen , who moved into a basement apartment in Ruddington in August 2001. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparative flats in Ruddington with an extended lease were in the region of £210,000. The average amount of ground rent was £50 collected yearly. The lease lapsed on 13 November 2105. Having 80 years remaining we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
Mr and Mrs. U James completed a basement apartment in Ruddington in November 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Ruddington with 100 year plus lease were in the region of £275,000. The average ground rent payable was £45 invoiced yearly. The lease end date was on 28 August 2094. Taking into account 69 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.