There is no doubt about it a leasehold flat or house in Ramsbottom is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 100 years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Most flat owners in Ramsbottom will qualify for this right; that being said a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Ramsbottom leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel was the the leasehold owner of a studio apartment in Ramsbottom being sold with a lease of a little over 72 years outstanding. Gabriel on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
In 2009 we were phoned by Dr O Murphy who, having moved into a purpose-built apartment in Ramsbottom in March 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparative homes in Ramsbottom with 100 year plus lease were valued about £267,600. The average amount of ground rent was £65 billed every twelve months. The lease lapsed on 15 January 2093. Given that there were 67 years left we calculated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 not including legals.
Last Summer we were approach by Dr Callum Ali , who acquired a purpose-built flat in Ramsbottom in March 2007. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical residencies in Ramsbottom with an extended lease were worth £206,200. The mid-range ground rent payable was £55 collected per annum. The lease expired on 25 February 2082. Considering the 56 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.