Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in South Ruislip. Clearly, the period of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the property needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in South Ruislip have the right to extend the lease for a further ninety years in accordance with statute. Do give due consideration before delaying your South Ruislip lease extension. Holding off the cost now simply increases the price you will ultimately incur to extend your lease
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in South Ruislip,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 experience and the close ties they enjoy with South Ruislip valuers.
Off the back of unsuccessful negotiations with the landlord of her garden flat in South Ruislip, Abigail commenced the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The lease extension was concluded in August 2014. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. D Wright moved into a garden flat in South Ruislip in October 2012. We are asked if we could approximate the price could be for a ninety year lease extension. Similar premises in South Ruislip with a long lease were valued about £264,000. The average ground rent payable was £60 collected monthly. The lease lapsed in 2078. Taking into account 53 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 plus expenses.
An example of a Lease Extension matter before the tribunal 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 53.26 years.