The market value of Ranmoor leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is below than eighty years
Leasehold premises in Ranmoor with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 conveyancing solicitors that we work with procure Ranmoor 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 lawyer we work with provide it.
Caleb was the the leasehold proprietor of a 2 bedroom apartment in Ranmoor on the market with a lease of a few days over 72 years remaining. Caleb informally approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Caleb to exercise his statutory right. Caleb procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. E Edwards purchased a one bedroom flat in Ranmoor in January 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Ranmoor with an extended lease were in the region of £176,200. The average amount of ground rent was £65 billed yearly. The lease ended on 12 February 2081. Given that there were 56 years remaining we estimated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus legals.
Mr and Mrs. J Brooks completed a one bedroom flat in Ranmoor in October 2006. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparative properties in Ranmoor with 100 year plus lease were valued about £237,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease concluded in 2092. Having 67 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including professional charges.