Ramsbottom leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Ramsbottom tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Ramsbottom you should see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Ramsbottom flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, 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. |
| Bank of Scotland | 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you enhanced control over the value of your Ramsbottom leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Finn, came perilously close to the eighty-year mark with the lease on his leasehold apartment in Ramsbottom. In buying his flat 18 years previously, the length of the lease was of little importance. Thankfully, he became aware that he would soon be paying way over the odds for a lease extension. Finn arranged for a lease extension just ahead of time in July. Finn and the freeholder via the management company subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the price would have escalated by a minimum £1,150.
In 2011 we were approached by Dr Tia Scott who, having moved into a ground floor apartment in Ramsbottom in October 2004. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical premises in Ramsbottom with a long lease were valued around £210,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated on 10 April 2106. Given that there were 80 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
In 2009 we were contacted by Dr Georgina Morel who, having moved into a basement apartment in Ramsbottom in August 2012. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparable premises in Ramsbottom with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease ended in 2095. Considering the 69 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.