As the length of the unexpired term of a Ravenshead residential lease lessens so does its value and therefore the value of your property. Where the lease has, over one hundred years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Ravenshead will qualify for this right; nevertheless a lawyer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Ravenshead,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ravenshead valuers.
Subsequent to unsuccessful discussions with the landlord of her garden flat in Ravenshead, Georgia commenced the lease extension process as the eighty year mark was fast advancing. The legal work completed in July 2008. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were called by Mrs Sian Lefebvre , who purchased a one bedroom flat in Ravenshead in March 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable premises in Ravenshead with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 invoiced yearly. The lease lapsed on 2 July 2092. Taking into account 67 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus professional charges.
Last Winter we were e-mailed by Mrs Isabelle Wilson , who completed a one bedroom flat in Ravenshead in March 2001. We are asked if we could estimate the price would be for a ninety year lease extension. Similar residencies in Ravenshead with 100 year plus lease were worth £201,200. The mid-range ground rent payable was £55 collected annually. The lease terminated on 9 October 2081. Taking into account 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.