Unfortunately that a Ruskington residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Ruskington property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Ruskington will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Ruskington with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Ruskington leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Andrew owned a 2 bedroom flat in Ruskington on the market with a lease of just over fifty eight years outstanding. Andrew informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Ms Rachael Miller owned a one bedroom flat in Ruskington in July 2009. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in Ruskington with 100 year plus lease were valued around £254,200. The mid-range ground rent payable was £60 billed yearly. The lease concluded in 2077. Considering the 51 years remaining we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 plus expenses.
Last Autumn we were approach by Mr and Mrs. K Patel , who owned a one bedroom apartment in Ruskington in February 2007. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparative homes in Ruskington with an extended lease were valued around £210,600. The mid-range ground rent payable was £45 invoiced annually. The lease came to a finish in 2088. Considering the 62 years outstanding we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.