As the the remaining lease term of a Ruthin domestic lease decreases so does its value and therefore the value of your property. If the residual term has, over 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Ruthin will qualify for this right; however a conveyancer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Ruthin with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Ruthin,the lease extension solicitors that we work with will always be prepared 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.
Half a year ago Harry, came dangerously near to the eighty-year threshold with the lease on his purpose- built apartment in Ruthin. Having purchased his property 19 years previously, the length of the lease was of minimal importance. Fortunately, he recognised he needed to take action soon on Extending the lease. Harry arranged for a lease extension just in the nick of time last July. Harry and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If he not met the deadline, the sum would have escalated by at least £1,150.
In 2010 we were e-mailed by Mr and Mrs. P Davis who, having took over the lease of a first floor apartment in Ruthin in September 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Ruthin with an extended lease were valued about £191,400. The average ground rent payable was £55 invoiced annually. The lease ran out on 3 May 2080. Taking into account 54 years outstanding we approximated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 plus fees.
Last July we were e-mailed by Mr and Mrs. J Lambert , who bought a studio apartment in Ruthin in November 1996. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical homes in Ruthin with an extended lease were worth £295,000. The mid-range ground rent payable was £45 billed quarterly. The lease expired on 10 October 2100. Considering the 74 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.