Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ramsbottom. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Ramsbottom have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. You should give due consideration before putting off your Ramsbottom lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Ramsbottom,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ramsbottom valuers.
Following unsuccessful negotiations with the landlord of her basement apartment in Ramsbottom, Megan commenced the lease extension process as the 80 year threshold was rapidly coming. The lease extension was finalised in May 2014. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were called by Mr E Scott , who purchased a one bedroom flat in Ramsbottom in September 2007. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparative premises in Ramsbottom with an extended lease were worth £285,000. The average amount of ground rent was £45 collected quarterly. The lease ended in 2098. Having 72 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.
Last Spring we were called by Dr W Parker , who completed a purpose-built flat in Ramsbottom in September 2001. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Similar homes in Ramsbottom with 100 year plus lease were in the region of £233,200. The mid-range amount of ground rent was £60 collected yearly. The lease lapsed on 1 February 2087. Having 61 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.