Ramsbottom leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher premium will be payable. Flat owners in Ramsbottom will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you enhanced control over the value of your Ramsbottom 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her one bedroom flat in Ramsbottom, Chloe started the lease extension process as the 80 year threshold was swiftly advancing. The lease extension completed in March 2013. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. A Reed acquired a basement apartment in Ramsbottom in February 2004. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Ramsbottom with 100 year plus lease were valued about £174,200. The average ground rent payable was £55 billed every twelve months. The lease expired on 12 August 2077. Taking into account 51 years outstanding we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including fees.
Last Winter we were contacted by Mr and Mrs. V Hernández , who was assigned a lease of a one bedroom apartment in Ramsbottom in July 2004. The question was if we could approximate the price could be for a 90 year lease extension. Identical premises in Ramsbottom with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish on 20 July 2097. Given that there were 71 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.