On the balance of probabilities where you own a flat in Ramsbottom you actually own a long leasehold interest over your property
Leasehold properties in Ramsbottom with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Ramsbottom leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Theo, started to get close to the 80-year mark with the lease on his leasehold apartment in Ramsbottom. In buying his property two decades ago, the unexpired term was of little interest. Thankfully, he became aware that he needed to take action soon on Extending the lease. Theo was able to extend his lease just in the nick of time in June. Theo and the freeholder ultimately settled on an amount of £6,000 . If the lease had descended to less than 80 years, the sum would have increased by a minimum £925.
Last Summer we were approach by Dr S François , who acquired a basement flat in Ramsbottom in September 2004. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical properties in Ramsbottom with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease end date was in 2104. Considering the 78 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.
Mrs U Harris took over the lease of a basement apartment in Ramsbottom in October 1999. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar residencies in Ramsbottom with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 billed monthly. The lease finished in 2093. Given that there were 67 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus professional charges.