The market value of a leasehold property in Ravenglass is impacted by how long the lease has remaining. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that a lease extension can be concluded prior to the eighty year mark. Leasehold Reform legislation entitles Ravenglass qualifying lessees to an additional term of 90 years on top of the existing term, at a nominal rent (no ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
Irrespective of whether you are a tenant or a landlord in Ravenglass,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ravenglass valuers.
Last year Jayden, started to get near to the eighty-year threshold with the lease on his basement apartment in Ravenglass. Having bought his property 18 years previously, the unexpired term was of little relevance. by good luck, he realised he would imminently be paying an inflated amount for Extending the lease. Jayden was able to extend his lease at the eleventh hour in September. Jayden and the freeholder eventually agreed on the final figure of £6,000 . If the lease had descended lower than 80 years, the figure would have gone up by at least £1,150.
Dr Louise Young bought a first floor flat in Ravenglass in August 2001. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical flats in Ravenglass with a long lease were valued about £242,600. The average amount of ground rent was £45 collected quarterly. The lease terminated in 2093. Considering the 67 years remaining we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.
Last Christmas we were contacted by Ms Grace Torres , who purchased a first floor flat in Ravenglass in May 2006. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative flats in Ravenglass with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 billed yearly. The lease concluded in 2104. Given that there were 78 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.