The closer a residential lease in Ramsbottom gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of 99 years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Many flat owners in Ramsbottom will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Ramsbottom,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ramsbottom valuers.
In the wake of eight months of protracted negotiations with the landlord of her two bedroom apartment in Ramsbottom, Freya started the lease extension process as the eighty year deadline was quickly nearing. The legal work completed in September 2006. The landlord’s costs were negotiated to less than six hundred GBP.
Last Christmas we were phoned by Mr L Lee , who completed a garden apartment in Ramsbottom in October 2009. The dilemma was if we could estimate the price could be to prolong the lease by 90 years. Comparable homes in Ramsbottom with a long lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed yearly. The lease expiry date was on 12 March 2085. Having 59 years left we approximated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of legals.
In 2009 we were contacted by Mr Milo López who, having owned a one bedroom apartment in Ramsbottom in March 1997. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar premises in Ramsbottom with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended in 2105. Having 79 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.