The only way is down when it comes to Ramsbottom lease terms. Ramsbottom flats that have a remaining term fewer than eighty years will de-escalate in market price at a rapid rate, and the cost of extending your lease will rise.
Leasehold premises in Ramsbottom with over one hundred years remaining on the lease are often regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Ramsbottom 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.
George owned a high value flat in Ramsbottom being marketed with a lease of a few days over 59 years remaining. George informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were George to invoke his statutory right. George procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr and Mrs. B Turner completed a ground floor flat in Ramsbottom in September 2002. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical homes in Ramsbottom with an extended lease were worth £280,000. The average amount of ground rent was £45 billed monthly. The lease ended on 8 November 2096. Considering the 70 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Last Christmas we were approach by Dr Isobel Rivera , who bought a studio flat in Ramsbottom in March 2006. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative premises in Ramsbottom with a long lease were valued around £223,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease concluded in 2085. Considering the 59 years remaining we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of professional charges.