On the balance of probabilities if you own a flat in Ramsbottom you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Ramsbottom,the lease extension experts that we work with will always be willing 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.
Last year Cameron, came seriously near to the 80-year threshold with the lease on his purpose- built apartment in Ramsbottom. Having purchased his home 18 years previously, the lease term was of minimal relevance. Fortunately, he noticed he would imminently be paying an inflated amount for a lease extension. Cameron extended the lease just ahead of time in July. Cameron and the freeholder via the management company eventually agreed on an amount of £6,000 . If the lease had slipped lower than eighty years, the price would have escalated by a minimum £900.
Last Spring we were contacted by Dr Caitlin Cook , who completed a one bedroom apartment in Ramsbottom in July 2007. We are asked if we could approximate the price could be to prolong the lease by an additional years. Identical premises in Ramsbottom with an extended lease were valued around £200,000. The mid-range amount of ground rent was £50 billed per annum. The lease elapsed on 16 August 2102. Having 77 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
Last month we were called by Mr and Mrs. W Cooper , who took over the lease of a ground floor flat in Ramsbottom in September 2010. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative premises in Ramsbottom with an extended lease were worth £260,200. The average ground rent payable was £65 billed monthly. The lease ended on 19 November 2091. Having 66 years outstanding we approximated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of legals.