There is no doubt about it a leasehold property in Ramsbottom is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Ramsbottom will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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 freeholder in Ramsbottom,the lease extension solicitors 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 Ramsbottom valuers.
Charlie owned a 2 bedroom flat in Ramsbottom being marketed with a lease of a few days over 61 years unexpired. Charlie informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Charlie to invoke his statutory right. Charlie procured expert advice and secured an acceptable deal informally and sell the flat.
In 2011 we were e-mailed by Mr and Mrs. Y Rivera who, having bought a studio flat in Ramsbottom in February 2006. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar flats in Ramsbottom with a long lease were worth £184,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease lapsed in 2077. Considering the 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.
Last year we were approach by Dr Archie Walker , who took over the lease of a one bedroom apartment in Ramsbottom in July 2011. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparable flats in Ramsbottom with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced yearly. The lease ended in 2097. Having 73 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.