Ramsbottom leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Ramsbottom residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Ramsbottom you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Ramsbottom with over 100 years remaining on the lease are often referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Lease extensions in Ramsbottom can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Ramsbottom lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy negotiations with the freeholder of her one bedroom flat in Ramsbottom, Isabella commenced the lease extension process as the eighty year threshold was rapidly nearing. The legal work was finalised in November 2010. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr and Mrs. S Girard , who purchased a first floor apartment in Ramsbottom in October 2006. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Ramsbottom with a long lease were valued about £191,400. The mid-range amount of ground rent was £55 invoiced yearly. The lease ended on 9 June 2079. Given that there were 54 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus professional charges.
Ms Melissa Walker acquired a one bedroom flat in Ramsbottom in March 2003. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Identical premises in Ramsbottom with an extended lease were worth £295,000. The average ground rent payable was £45 billed per annum. The lease ended on 26 July 2099. Given that there were 74 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.