Why you should start your Ruskington lease extension

Main reasons to start your Ruskington lease extension today:

A Ruskington leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Ruskington depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that all matters can be finalised in advance of the eighty year cut off point. Statute entitles Ruskington qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in Ruskington with more than one hundred years unexpired 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not issue a mortgage with a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now expect flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Given that plenty of flats in Ruskington were created in the 1950s, 1960s and 1970s as a result many now require lease extensions if they wish to obtain a mortgage.

Get in touch with one of our Ruskington lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Ruskington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ruskington valuers.

Ruskington Lease Extension Case Studies:

Jasper, Ruskington, Lincolnshire

Two years ago Jasper, started to get close to the 80-year threshold with the lease on his leasehold flat in Ruskington. In buying his home two decades ago, the length of the lease was of no bearing. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. Jasper was able to extend his lease at the eleventh hour last July. Jasper and the freeholder via the managing agents in the end settled on sum of £5,000 . If the lease had gone lower than 80 years, the sum would have escalated by a minimum £950.

Ruskington case:

Mr and Mrs. S Moore purchased a one bedroom flat in Ruskington in August 2010. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Ruskington with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 billed yearly. The lease elapsed in 2080. Given that there were 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including fees.

Ruskington case:

Last year we were contacted by Dr John Gómez , who bought a ground floor flat in Ruskington in March 2006. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Ruskington with a long lease were in the region of £227,800. The average amount of ground rent was £45 invoiced yearly. The lease ran out in 2091. Given that there were 65 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.