It’s an underpublicised certainty that a Ruthin residential lease is a deteriorating 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 depreciation being disguised by increases in the Ruthin property market.Where your lease has approximately ninety years left, you should start considering 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 slips lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Ruthin will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally considered that a property with in excess of 100 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 residence will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Ruthin can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ruthin lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Jackson, started to get close to the eighty-year mark with the lease on his ground floor apartment in Ruthin. In buying his home two decades ago, the unexpired term was of little concern. by good luck, it dawned on him that he needed to take action soon on a lease extension. Jackson extended the lease just under the wire in August. Jackson and the landlord in the end settled on an amount of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £1,100.
In 2014 we were contacted by Mr Joseph Ali who, having acquired a studio flat in Ruthin in January 2002. We are asked if we could estimate the price would be to extend the lease by 90 years. Identical flats in Ruthin with an extended lease were valued about £225,800. The average ground rent payable was £60 billed quarterly. The lease ran out on 1 March 2085. Having 60 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 not including legals.
In 2009 we were called by Dr I Phillips who, having moved into a one bedroom apartment in Ruthin in May 2011. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar homes in Ruthin with a long lease were worth £210,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease lapsed on 21 November 2105. Taking into account 80 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.