There is no doubt about it a leasehold property in Ruthin is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 99 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. The majority of flat owners in Ruthin will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Retaining our service will provide you enhanced control over the value of your Ruthin leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the landlord of her one bedroom apartment in Ruthin, Shannon initiated the lease extension process as the eighty year mark was quickly nearing. The lease extension completed in September 2011. The freeholder’s fees were restricted to less than 450 GBP.
Dr G King completed a newly refurbished flat in Ruthin in March 2001. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative properties in Ruthin with 100 year plus lease were valued around £267,600. The mid-range ground rent payable was £65 billed annually. The lease terminated on 17 November 2092. Taking into account 67 years outstanding we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of fees.
Ms V James bought a one bedroom flat in Ruthin in August 1997. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative homes in Ruthin with an extended lease were worth £201,200. The mid-range ground rent payable was £55 collected annually. The lease concluded on 28 February 2081. Given that there were 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.