As the length of the unexpired term of a Rudry domestic lease lessens so does its value and therefore the value of your property. If the lease has, over 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. Most flat owners in Rudry will meet the qualifying criteria; however a lawyer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Rudry with more than one hundred years outstanding on the lease are often referred to as ‘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 purchasing the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Rudry 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.
Milo was the the leasehold proprietor of a conversion flat in Rudry on the market with a lease of a few days over sixty years outstanding. Milo informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Milo to exercise his statutory right. Milo obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last June we were contacted by Mrs Catherine Nelson , who was assigned a lease of a purpose-built apartment in Rudry in September 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable premises in Rudry with an extended lease were in the region of £300,000. The average ground rent payable was £50 invoiced monthly. The lease termination date was on 4 June 2102. Considering the 76 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
Last month we were e-mailed by Mr Harvey David , who was assigned a lease of a one bedroom flat in Rudry in October 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Rudry with a long lease were worth £257,800. The average amount of ground rent was £65 collected per annum. The lease ran out on 1 October 2091. Given that there were 65 years unexpired we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including legals.