When it comes to domestic leasehold premises in Ranmoor, you are actually purchasing an entitlement to live in a property for a set 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 long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than eighty years remaining. Leasehold owners in Ranmoor with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has fewer than eighty years remaining, under the relevant legislation the landlord can calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ranmoor can be a difficult process. We recommend you get guidance from a conveyancer and valuer 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 Ranmoor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful discussions with the landlord of her garden flat in Ranmoor, Jasmine started the lease extension process as the 80 year threshold was quickly nearing. The transaction was finalised in February 2007. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were approached by Mr and Mrs. W Sánchez who, having owned a studio flat in Ranmoor in July 2012. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable premises in Ranmoor with a long lease were worth £227,800. The average amount of ground rent was £45 billed yearly. The lease finished in 2091. Given that there were 65 years unexpired we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.
Last month we were contacted by Mr Reuben Hall , who took over the lease of a one bedroom flat in Ranmoor in April 2002. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar properties in Ranmoor with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease concluded on 22 October 2102. Having 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.