The market value of a leasehold property in Ruislip Gardens is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised prior to the eighty year mark. Statute entitles Ruislip Gardens qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Ruislip Gardens with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancers that we work with procure Ruislip Gardens 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.
Trailing unsuccessful negotiations with the freeholder of her garden apartment in Ruislip Gardens, Kayleigh initiated the lease extension process as the 80 year threshold was quickly nearing. The legal work was concluded in November 2015. The freeholder’s costs were kept to an absolute minimum.
Mr Logan Williams bought a garden apartment in Ruislip Gardens in January 2001. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Similar premises in Ruislip Gardens with 100 year plus lease were worth £208,200. The average ground rent payable was £65 billed every twelve months. The lease ended on 27 August 2087. Given that there were 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of costs.
An example of a Lease Extension decision for a Ruislip Gardens property is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case was in relation to 1 flat. The unexpired term was 53.26 years.