Top reasons for Ramsbottom lease extension

Main reasons to commence your Ramsbottom lease extension today:

A Ramsbottom leasehold property depreciates with the years remaining on the lease.

Ramsbottom leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Ramsbottom tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Ramsbottom you really ought to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to loan monies on a short lease

Mortgage companies are really restricting their approach as regards to homes in Ramsbottom with short leases. For example you might discover that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so if you needed to sell, your only options would be to find a cash buyer, or try your luck at auction thus reducing your market.

Get in touch with one of our Ramsbottom lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake 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 conveyancer we work with provide it.

Ramsbottom Lease Extension Case Studies:

Arthur, Ramsbottom, Greater Manchester

During the course of the last few months Arthur, came very close to the eighty-year mark with the lease on his basement apartment in Ramsbottom. Having bought his property two decades ago, the unexpired term was of minimal interest. As luck would have it, he realised he would soon be paying way over the odds for a lease extension. Arthur extended the lease just under the wire last July. Arthur and the freeholder ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £1,100.

Ramsbottom case:

Mr and Mrs. R Wood bought a one bedroom flat in Ramsbottom in February 1997. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical premises in Ramsbottom with an extended lease were worth £225,800. The mid-range ground rent payable was £60 billed monthly. The lease expired in 2086. Given that there were 60 years remaining we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of costs.

Ramsbottom case:

Last month we were e-mailed by Dr L Lefèvre , who took over the lease of a basement apartment in Ramsbottom in April 2003. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Ramsbottom with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease elapsed on 10 September 2106. Having 80 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.