The market value of a leasehold property in Ruislip depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded well before the eighty year mark. Current legislation enables Ruislip 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 purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Ruislip with in excess of 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Ruislip 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.
During the course of the last few months Ben, came precariously near to the 80-year threshold with the lease on his two bedroom flat in Ruislip. Having purchased his home two decades ago, the lease term was of no concern. Thankfully, he noticed he needed to take action soon on a lease extension. Ben arranged for a lease extension at the eleventh hour last August. Ben and the freeholder via the managing agents ultimately settled on an amount of £5,000 . If the lease had gone to less than 80 years, the premium would have escalated by a minimum £850.
Mr and Mrs. L Harris was assigned a lease of a purpose-built apartment in Ruislip in July 2008. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative flats in Ruislip with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 invoiced every twelve months. The lease expired in 2083. Given that there were 57 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
An example of a Lease Extension decision for a Ruislip property is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case affected 1 flat. The unexpired term as at the valuation date was 53.26 years.