For those whose Ruthin property is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Ruthin with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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; |
| Coventry Building Society | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Ruthin,the lease extension lawyers 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.
After lengthy discussions with the freeholder of her one bedroom apartment in Ruthin, Ellie commenced the lease extension process as the 80 year threshold was rapidly coming. The lease extension completed in July 2005. The landlord’s charges were negotiated to about 500 GBP.
Last April we were e-mailed by Mr and Mrs. L Brown , who acquired a ground floor apartment in Ruthin in February 2007. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar properties in Ruthin with an extended lease were in the region of £257,800. The average amount of ground rent was £65 invoiced annually. The lease expiry date was on 26 May 2091. Taking into account 65 years outstanding we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including professional charges.
Dr A Wilson bought a basement flat in Ruthin in February 2005. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Identical residencies in Ruthin with 100 year plus lease were in the region of £191,400. The mid-range ground rent payable was £55 collected per annum. The lease elapsed in 2080. Given that there were 54 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 not including fees.