The value of Ruddington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you better control over the value of your Ruddington leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Samuel, came critically close to the 80-year threshold with the lease on his one bedroom flat in Ruddington. Having purchased his property two decades ago, the unexpired term was of no importance. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Samuel extended the lease just under the wire in July. Samuel and the freeholder via the managing agents subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have escalated by at least £875.
In 2011 we were approached by Dr Edward Ali who, having took over the lease of a purpose-built flat in Ruddington in January 1998. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable flats in Ruddington with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed per annum. The lease termination date was on 3 November 2098. Having 73 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Mr Jacob Gómez moved into a ground floor apartment in Ruddington in April 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Ruddington with an extended lease were valued about £235,600. The average ground rent payable was £60 invoiced annually. The lease termination date was on 5 April 2087. Having 62 years remaining we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including expenses.