The market value of a leasehold property in Ruskington depends on how many years the lease has left to run. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded prior to the 80 year cut off point. Statute entitles Ruskington qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Ruskington with in excess of one hundred 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Ruskington,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ruskington valuers.
Edward owned a studio apartment in Ruskington being sold with a lease of a little over 72 years unexpired. Edward informally approached his landlord a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Edward to exercise his statutory right. Edward procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Dr Rory Miller took over the lease of a newly refurbished apartment in Ruskington in February 2011. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Similar properties in Ruskington with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease end date was on 21 October 2096. Having 70 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2014 we were e-mailed by Mr and Mrs. T Davies who, having acquired a ground floor flat in Ruskington in November 2009. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Ruskington with a long lease were valued about £246,800. The mid-range ground rent payable was £60 collected quarterly. The lease ran out on 9 March 2076. Having 50 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus costs.