Chances are that if you own a flat in Ruthin you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Ruthin,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 Ruthin valuers.
Two years ago Luke, started to get near to the 80-year threshold with the lease on his studio flat in Ruthin. In buying his home two decades ago, the length of the lease was of minimal significance. by good luck, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Luke arranged for a lease extension just under the wire last June. Luke and the landlord ultimately settled on a premium of £5,500 . If the lease had fallen below 80 years, the sum would have gone up by a minimum £975.
In 2014 we were contacted by Mr R Gómez who, having owned a one bedroom apartment in Ruthin in August 2009. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Similar properties in Ruthin with an extended lease were worth £205,000. The average amount of ground rent was £50 collected monthly. The lease came to a finish on 28 November 2104. Considering the 79 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
Dr Michael Harris was assigned a lease of a recently refurbished flat in Ruthin in May 1995. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Identical residencies in Ruthin with 100 year plus lease were valued around £275,000. The average ground rent payable was £65 invoiced annually. The lease lapsed on 15 June 2093. Taking into account 68 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.