For anyone whose South Ruislip property is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in South Ruislip,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Ruislip valuers.
Following unsuccessful discussions with the landlord of her first floor flat in South Ruislip, Ellen started the lease extension process as the eighty year threshold was rapidly coming. The lease extension was finalised in June 2012. The freeholder’s costs were restricted to a tad over 550 pounds.
In 2014 we were contacted by Ms O Norbert who, having acquired a garden apartment in South Ruislip in July 1999. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparable premises in South Ruislip with 100 year plus lease were valued about £280,000. The average amount of ground rent was £55 collected yearly. The lease lapsed in 2103. Given that there were 78 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.
An example of a Lease Extension case for a South Ruislip property is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case affected 1 flat. The unexpired residue of the current lease was 53.26 years.