There is no doubt about it a leasehold flat or house in West Ruislip is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in West Ruislip will meet the qualifying criteria; that being said a conveyancer should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in West Ruislip with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your West Ruislip leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Muhammad, started to get near to the eighty-year mark with the lease on his ground floor apartment in West Ruislip. Having bought his property two decades ago, the unexpired term was of no interest. Fortunately, he realised he needed to take action soon on a lease extension. Muhammad extended the lease at the eleventh hour last May. Muhammad and the freeholder ultimately settled on a premium of £5,000 . If the lease had slid lower than 80 years, the premium would have increased by a minimum £900.
In 2014 we were called by Mr and Mrs. V Roberts who, having completed a studio flat in West Ruislip in September 2004. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar premises in West Ruislip with a long lease were in the region of £270,000. The mid-range ground rent payable was £65 collected annually. The lease finished on 13 August 2093. Considering the 68 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.
Mr Benjamin Moreau bought a one bedroom flat in West Ruislip in April 2011. The dilemma was if we could approximate the price would be for a ninety year lease extension. Identical residencies in West Ruislip with an extended lease were worth £208,600. The average amount of ground rent was £60 invoiced monthly. The lease terminated in 2082. Taking into account 57 years left we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of expenses.