Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ravenglass. Inevitably, the term of lease left shortens over time. This is often ignored and only becomes a problem when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Ravenglass have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. You should give careful attention before delaying your Ravenglass lease extension. Holding off that expense now likely increases the price you will eventually have to pay to extend your lease
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| National Westminster Bank | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with procure Ravenglass 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 conveyancing solicitor we work with provide it.
Adam was the the leasehold proprietor of a conversion flat in Ravenglass on the market with a lease of just over 72 years remaining. Adam informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Adam to exercise his statutory right. Adam procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Last month we were contacted by Mr H Thomas , who owned a studio flat in Ravenglass in October 2010. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar flats in Ravenglass with a long lease were in the region of £250,000. The average ground rent payable was £50 collected monthly. The lease finished on 13 February 2095. Taking into account 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last month we were contacted by Mr T Mason , who took over the lease of a studio apartment in Ravenglass in March 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Ravenglass with an extended lease were worth £290,000. The mid-range ground rent payable was £60 billed yearly. The lease finished on 28 February 2106. Considering the 80 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.