With a domestic leasehold premises in Ramsgate, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Leasehold owners in Ramsgate with a lease nearing 81 years left should seriously think of extending it without delay. When a lease has less than eighty years left, under the relevant legislation the freeholder can calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | 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. |
The conveyancers that we work with procure Ramsgate lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Henry, started to get near to the 80-year threshold with the lease on his studio apartment in Ramsgate. In buying his home twenty years ago, the length of the lease was of no importance. by good luck, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Henry arranged for a lease extension just under the wire last May. Henry and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If he not met the deadline, the premium would have gone up by at least £1,125.
Mr and Mrs. Y Petit acquired a first floor flat in Ramsgate in October 2000. The question was if we could approximate the premium could be for a ninety year lease extension. Identical properties in Ramsgate with a long lease were worth £166,400. The mid-range ground rent payable was £60 billed per annum. The lease lapsed in 2080. Having 54 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.
Last Spring we were e-mailed by Mr H Scott , who purchased a basement flat in Ramsgate in September 1996. We are asked if we could approximate the price could be for a 90 year lease extension. Identical residencies in Ramsgate with 100 year plus lease were worth £227,800. The average amount of ground rent was £45 collected every twelve months. The lease came to a finish in 2091. Given that there were 65 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.