When it comes to residential leasehold premises in Ravenscourt Park, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years remaining. Residents in Ravenscourt Park with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the current statute the landlord can calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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 lawyers that we work with handle Ravenscourt Park 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 conveyancer we work with provide it.
Subsequent to lengthy correspondence with the landlord of her garden apartment in Ravenscourt Park, Alexandra started the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension was finalised in March 2008. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were approached by Dr Jasper Allen who, having completed a first floor flat in Ravenscourt Park in June 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar homes in Ravenscourt Park with a long lease were worth £181,600. The average ground rent payable was £55 billed annually. The lease lapsed in 2078. Considering the 52 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Ravenscourt Park flat is 19 Crisp Road in June 2009. Following a vesting order (Under section 26 of the Leasehold Reform,Housing and Urban Development Act 1993) The tribunal determined that the premium payable for the acquisition of the freehold was £33,756,apportioned as to£12,285 for the lower at and £21,471for the upper fat. This case related to 2 flats. The number of years remaining on the existing lease(s) was 68.32 years.