Chances are that where you own a flat in Ruthin you actually own a long leasehold interest over your property
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective 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 experience and the close ties they enjoy with Ruthin valuers.
Two years ago David, came perilously close to the eighty-year threshold with the lease on his studio apartment in Ruthin. In buying his flat two decades ago, the length of the lease was of no importance. As luck would have it, he became aware that he would soon be paying an escalated premium for Extending the lease. David was able to extend his lease just in the nick of time in June. David and the freeholder eventually agreed on a premium of £5,500 . If the lease had fallen below eighty years, the figure would have escalated by a minimum £1,100.
Last Spring we were contacted by Dr M Miller , who took over the lease of a one bedroom flat in Ruthin in June 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Ruthin with an extended lease were in the region of £252,800. The mid-range amount of ground rent was £65 collected monthly. The lease lapsed on 12 August 2089. Having 65 years left we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 plus costs.
Mrs Lauren Adams moved into a one bedroom flat in Ruthin in July 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Ruthin with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 collected quarterly. The lease ended in 2078. Given that there were 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus expenses.