South Ruislip leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most South Ruislip tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in South Ruislip you would be well advised to check if your lease has between 70 and ninety years remaining. There are compelling reasons why a South Ruislip flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in South Ruislip can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring South Ruislip lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the landlord of her purpose-built flat in South Ruislip, Abigail initiated the lease extension process as the 80 year threshold was fast nearing. The lease extension was concluded in January 2007. The freeholder’s fees were restricted to about 700 pounds.
In 2013 we were contacted by Mrs Alicia Lewis who, having owned a ground floor apartment in South Ruislip in February 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical flats in South Ruislip with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease concluded in 2096. Taking into account 71 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension decision for a South Ruislip premises is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case related to 1 flat. The unexpired lease term was 53.26 years.