Ramsbottom leases on residential deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Ramsbottom will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Ramsbottom with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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. |
| Lloyds TSB Scotland | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ramsbottom can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Ramsbottom lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter owned a studio apartment in Ramsbottom on the market with a lease of just over fifty eight years unexpired. Dexter informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
Dr Sebastian Wright was assigned a lease of a purpose-built apartment in Ramsbottom in June 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Ramsbottom with an extended lease were worth £210,000. The average ground rent payable was £50 collected per annum. The lease terminated on 1 June 2104. Taking into account 80 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
Last year we were called by Ms E Girard , who owned a purpose-built flat in Ramsbottom in October 2006. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Ramsbottom with a long lease were valued about £275,000. The average ground rent payable was £45 collected every twelve months. The lease concluded in 2093. Taking into account 69 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.