The re-sale value of a leasehold property in Ruthin depends on how many years the lease has remaining. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised ahead of the 80 year cut off point. Current legislation enables Ruthin qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Blake was the the leasehold owner of a 2 bedroom flat in Ruthin being sold with a lease of just over sixty years remaining. Blake on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Blake to exercise his statutory right. Blake procured expert legal guidance and secured an acceptable deal informally and sell the property.
Ms N Ali was assigned a lease of a first floor apartment in Ruthin in February 2011. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable residencies in Ruthin with 100 year plus lease were valued around £290,000. The average amount of ground rent was £45 collected monthly. The lease ended on 9 July 2099. Taking into account 73 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
In 2011 we were e-mailed by Mr and Mrs. I Simon who, having bought a basement flat in Ruthin in August 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative premises in Ruthin with 100 year plus lease were in the region of £240,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expiry date was in 2088. Given that there were 62 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including professional charges.