The value of Ramsbottom leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is less than 80 years
Leasehold residencies in Ramsbottom with more than 100 years left 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 warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
Engaging our service gives you enhanced control over the value of your Ramsbottom leasehold, as your property will be more valuable and saleable in respect of 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.
Subsequent to lengthy negotiations with the landlord of her leasehold apartment in Ramsbottom, Alicia commenced the lease extension process as the 80 year mark was rapidly nearing. The lease extension completed in April 2009. The landlord’s charges were kept to an absolute minimum.
Last November we were contacted by Mr and Mrs. V Jones , who bought a ground floor apartment in Ramsbottom in November 2012. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical homes in Ramsbottom with 100 year plus lease were valued about £260,200. The average ground rent payable was £65 invoiced quarterly. The lease lapsed on 22 July 2092. Given that there were 66 years remaining we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including expenses.
In 2014 we were contacted by Mr N King who, having completed a one bedroom flat in Ramsbottom in June 2001. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable residencies in Ramsbottom with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished in 2081. Considering the 55 years outstanding we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including expenses.