When it comes to residential leasehold property in South Ruislip, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years left. Anyone in South Ruislip with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has below 80 years left, under the relevant Act the landlord can calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Engaging our service will provide you increased control over the value of your South Ruislip leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Mason, started to get close to the 80-year threshold with the lease on his leasehold flat in South Ruislip. In buying his property two decades ago, the length of the lease was of minimal importance. Luckily, he realised he would imminently be paying an inflated amount for a lease extension. Mason was able to extend his lease just ahead of time last January. Mason and the landlord who owned the flat above in the end settled on sum of £6,000 . If he had missed the deadline, the price would have escalated by a minimum £1,075.
Last Summer we were contacted by Mr and Mrs. G Murphy , who completed a ground floor apartment in South Ruislip in October 2008. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparable properties in South Ruislip with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 collected yearly. The lease lapsed on 20 January 2102. Given that there were 77 years outstanding we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
An example of a Lease Extension case for a South Ruislip residence is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case affected 1 flat. The remaining number of years on the lease was 53.26 years.