The nearer a domestic lease in West Ruislip gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in West Ruislip will qualify for this right; that being said a conveyancer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 West Ruislip can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 procuring West Ruislip lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harrison owned a 2 bedroom flat in West Ruislip being sold with a lease of just over 59 years left. Harrison on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Harrison to invoke his statutory right. Harrison procured expert legal guidance and secured satisfactory deal informally and sell the property.
Mr and Mrs. E Mercier moved into a one bedroom flat in West Ruislip in March 2009. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative residencies in West Ruislip with 100 year plus lease were valued about £191,400. The mid-range amount of ground rent was £55 invoiced quarterly. The lease concluded in 2080. Considering the 54 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 plus fees.
Last month we were contacted by Dr Megan Cooper , who acquired a one bedroom flat in West Ruislip in June 2003. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical residencies in West Ruislip with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease finished on 9 September 2100. Given that there were 74 years remaining we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.