When it comes to domestic leasehold premises in Ramsgate, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years remaining. Anyone in Ramsgate with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has under eighty years left, under the relevant Act the freeholder can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Ramsgate,the lease extension experts 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 Ramsgate valuers.
Jack owned a studio apartment in Ramsgate on the market with a lease of a few days over 59 years unexpired. Jack informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jack to exercise his statutory right. Jack obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Ms Isabel Roux took over the lease of a purpose-built apartment in Ramsgate in September 1996. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable homes in Ramsgate with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 collected every twelve months. The lease expired in 2082. Having 56 years remaining we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of fees.
In 2010 we were approached by Dr Jade Rogers who, having completed a studio flat in Ramsgate in July 2006. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparable premises in Ramsgate with 100 year plus lease were in the region of £242,600. The average ground rent payable was £45 invoiced yearly. The lease ran out in 2093. Taking into account 67 years unexpired we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus costs.