Ruislip leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Ruislip will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Ruislip can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Ruislip lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the landlord of her studio flat in Ruislip, Victoria initiated the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction was concluded in January 2015. The freeholder’s costs were restricted to less than 450 pounds.
In 2010 we were phoned by Ms Kirsty Davis who, having purchased a one bedroom apartment in Ruislip in October 2007. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical properties in Ruislip with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced monthly. The lease terminated on 28 August 2086. Taking into account 60 years unexpired we approximated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of expenses.
An example of a Lease Extension case for a Ruislip residence 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 residue of the current lease was 53.26 years.