It’s a harsh certainty that a Ruthin residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Ruthin property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Most flat owners in Ruthin will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Regardless of whether you are a tenant or a landlord in Ruthin,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 in-depth market knowledge and the close ties they enjoy with Ruthin valuers.
After lengthy discussions with the freeholder of her first floor apartment in Ruthin, Chantelle commenced the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work completed in October 2012. The landlord’s costs were restricted to less than 500 GBP.
In 2012 we were approached by Mr F Bonnet who, having owned a ground floor apartment in Ruthin in January 1996. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Ruthin with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed on 18 January 2081. Having 55 years remaining we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of legals.
In 2012 we were phoned by Mr and Mrs. G Edwards who, having purchased a garden flat in Ruthin in February 2002. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar residencies in Ruthin with 100 year plus lease were in the region of £295,000. The average ground rent payable was £50 billed monthly. The lease finished on 19 February 2101. Considering the 75 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.