As the length of the unexpired term of a Ramsgate domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Ramsgate will meet the qualifying criteria; that being said a lawyer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Ramsgate,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 Ramsgate valuers.
Muhammad owned a high value apartment in Ramsgate on the market with a lease of just over fifty eight years outstanding. Muhammad informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert advice and was able to make an informed decision and handle with the matter and sell the property.
Ms Melissa Hernández moved into a garden flat in Ramsgate in May 2008. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Ramsgate with a long lease were in the region of £218,000. The average amount of ground rent was £45 collected per annum. The lease finished on 14 September 2088. Having 63 years unexpired we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of fees.
Mr Adam Collins purchased a recently refurbished apartment in Ramsgate in August 1995. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar residencies in Ramsgate with an extended lease were worth £265,000. The average ground rent payable was £55 collected every twelve months. The lease elapsed in 2099. Given that there were 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.