Ruthin 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 the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Ruthin residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Ruthin you must see if your lease has between 70 and 90 years left. There are compelling reasons why a Ruthin leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in Ruthin with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Ruthin leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jason, came very near to the 80-year threshold with the lease on his basement apartment in Ruthin. In buying his flat two decades ago, the unexpired term was of no bearing. Fortunately, it dawned on him that he would soon be paying way over the odds for a lease extension. Jason was able to extend his lease at the eleventh hour last August. Jason and the freeholder via the management company eventually settled on sum of £5,500 . If the lease had fallen below 80 years, the price would have escalated by at least £1,025.
Last Christmas we were approach by Mrs Poppy Jones , who completed a one bedroom apartment in Ruthin in November 2011. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable properties in Ruthin with a long lease were valued around £210,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed in 2106. Taking into account 80 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
Mr and Mrs. A Rivera purchased a ground floor flat in Ruthin in August 2002. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in Ruthin with a long lease were worth £275,000. The mid-range ground rent payable was £45 billed yearly. The lease ran out in 2095. Having 69 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.