It’s a harsh truth that a Ruthin residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Ruthin property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. The majority of flat owners in Ruthin will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Ruthin with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works |
The conveyancing solicitors that we work with handle Ruthin lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Gabriel owned a conversion flat in Ruthin on the market with a lease of just over 61 years left. Gabriel on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
Last Autumn we were phoned by Ms A Thompson , who was assigned a lease of a one bedroom apartment in Ruthin in March 2007. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical premises in Ruthin with a long lease were valued around £240,600. The average amount of ground rent was £60 invoiced yearly. The lease finished in 2088. Having 62 years outstanding we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including expenses.
Last year we were contacted by Mr T Leroy , who owned a first floor apartment in Ruthin in January 2006. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical residencies in Ruthin with a long lease were worth £174,200. The average ground rent payable was £55 billed yearly. The lease concluded in 2077. Given that there were 51 years remaining we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.