When it comes to domestic leasehold property in Ruthin, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Ruthin with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has below 80 years outstanding, under the current legislation the freeholder can calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Ruthin can be a difficult process. We recommend you secure professional help 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 dealing with Ruthin lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Evan was the the leasehold proprietor of a studio flat in Ruthin being sold with a lease of a little over sixty years remaining. Evan on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Evan to invoke his statutory right. Evan obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last July we were phoned by Mr and Mrs. T Bennett , who took over the lease of a garden apartment in Ruthin in November 2002. The question was if we could approximate the price would be for a ninety year lease extension. Comparable properties in Ruthin with a long lease were in the region of £184,000. The average ground rent payable was £55 invoiced quarterly. The lease terminated on 14 February 2079. Given that there were 53 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.
Dr Noah David completed a first floor apartment in Ruthin in June 2007. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative flats in Ruthin with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 billed yearly. The lease came to a finish in 2099. Given that there were 73 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.