Unfortunately that a Ramsbottom residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Ramsbottom property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining dips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Ramsbottom will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Santander | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Ramsbottom,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ramsbottom valuers.
Twenty four months ago Jayden, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Ramsbottom. Having bought his flat two decades ago, the lease term was of minimal concern. Luckily, he realised he would imminently be paying an escalated premium for a lease extension. Jayden arranged for a lease extension just under the wire in March. Jayden and the freeholder in the end agreed on an amount of £5,500 . If the lease had slid below eighty years, the price would have increased by a minimum £1,100.
Last Christmas we were called by Mr Ben Roux , who was assigned a lease of a studio flat in Ramsbottom in July 2007. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical homes in Ramsbottom with 100 year plus lease were worth £250,400. The average ground rent payable was £65 collected annually. The lease elapsed in 2090. Given that there were 64 years unexpired we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of fees.
Mr I Robinson purchased a one bedroom apartment in Ramsbottom in June 2008. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Identical premises in Ramsbottom with a long lease were valued about £189,000. The average amount of ground rent was £55 collected monthly. The lease terminated on 17 January 2079. Having 53 years unexpired we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including professional charges.