Ramsbottom leases on domestic deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Ramsbottom will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Ramsbottom with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Ramsbottom,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ramsbottom valuers.
After unsuccessful negotiations with the landlord of her one bedroom flat in Ramsbottom, Ashleigh commenced the lease extension process as the 80 year threshold was swiftly nearing. The lease extension was finalised in October 2006. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. P Flores completed a purpose-built flat in Ramsbottom in August 2007. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar flats in Ramsbottom with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 collected yearly. The lease elapsed in 2105. Having 80 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
In 2011 we were phoned by Mr Freddie Wilson who, having owned a ground floor apartment in Ramsbottom in May 2009. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar properties in Ramsbottom with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £45 invoiced annually. The lease concluded in 2094. Considering the 69 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.