There is no doubt about it a leasehold flat or house in Ruislip is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Ruislip will qualify for this right; however a conveyancer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Ruislip with over one hundred years left 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Ruislip leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ethan was the the leasehold owner of a 2 bedroom apartment in Ruislip on the market with a lease of a little over sixty years left. Ethan informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Ethan to exercise his statutory right. Ethan procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were called by Mr and Mrs. P Robinson , who completed a garden flat in Ruislip in June 2000. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical premises in Ruislip with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced monthly. The lease concluded in 2100. Given that there were 75 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Ruislip flat is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case related to 1 flat. The unexpired term as at the valuation date was 53.26 years.