Chances are that where you own a flat in Ramsey you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ramsey can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Ramsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alex was the the leasehold owner of a conversion apartment in Ramsey on the market with a lease of just over 61 years outstanding. Alex informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Alex to exercise his statutory right. Alex obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Mr and Mrs. E Bell acquired a purpose-built apartment in Ramsey in August 2010. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Ramsey with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 invoiced quarterly. The lease ran out on 27 March 2097. Considering the 74 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Mr F James bought a purpose-built apartment in Ramsey in February 1996. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar residencies in Ramsey with a long lease were in the region of £243,000. The mid-range ground rent payable was £65 collected annually. The lease ran out in 2086. Taking into account 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of legals.