Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ravenshead. Inevitably, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Ravenshead have the right to extend the lease for an additional 90 years under legislation. Please give due attention before putting off your Ravenshead lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease
Leasehold properties in Ravenshead with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a landlord in Ravenshead,the lease extension lawyers that we work with will always be willing 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.
Isaac was the the leasehold proprietor of a studio flat in Ravenshead being marketed with a lease of just over fifty eight years remaining. Isaac informally contacted his landlord being a well known London-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 subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
In 2014 we were approached by Mr and Mrs. K Brown who, having acquired a one bedroom flat in Ravenshead in November 1997. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar homes in Ravenshead with 100 year plus lease were valued about £184,000. The average ground rent payable was £55 collected yearly. The lease came to a finish on 3 March 2079. Having 53 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.
Last Christmas we were contacted by Ms E Gunderson , who moved into a newly refurbished flat in Ravenshead in July 2011. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable flats in Ravenshead with a long lease were worth £290,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out on 27 August 2099. Given that there were 73 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.