It’s an underpublicised certainty that a Ramsbottom residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Ramsbottom property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. Most flat owners in Ramsbottom will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works | |
| Virgin |
Lease extensions in Ramsbottom can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ramsbottom lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Tommy, came critically near to the 80-year mark with the lease on his first floor flat in Ramsbottom. In buying his flat twenty years previously, the unexpired term was of no interest. Luckily, he recognised he would imminently be paying way over the odds for Extending the lease. Tommy arranged for a lease extension just in the nick of time in June. Tommy and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had fallen to less than 80 years, the premium would have gone up by a minimum £950.
In 2011 we were approached by Mr N Leroy who, having took over the lease of a garden flat in Ramsbottom in February 1998. The question was if we could approximate the price would be for a 90 year extension to my lease. Similar residencies in Ramsbottom with a long lease were valued about £275,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease elapsed on 13 February 2094. Considering the 68 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
In 2013 we were contacted by Mr and Mrs. I Michel who, having took over the lease of a recently refurbished flat in Ramsbottom in March 1996. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Ramsbottom with a long lease were valued around £208,600. The average amount of ground rent was £60 billed yearly. The lease ran out on 18 August 2083. Given that there were 57 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus expenses.