Ravenshead leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Ravenshead residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ravenshead you really ought to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Ravenshead with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ravenshead can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ravenshead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Eliot, came precariously close to the eighty-year mark with the lease on his studio flat in Ravenshead. Having purchased his flat two decades ago, the length of the lease was of no interest. Thankfully, it dawned on him that he would soon be paying way over the odds for a lease extension. Eliot arranged for a lease extension just in the nick of time last July. Eliot and the landlord who owned the flat above eventually agreed on sum of £5,500 . If the lease had dropped below eighty years, the sum would have escalated by a minimum £1,050.
Mrs D Leroy acquired a one bedroom flat in Ravenshead in October 1996. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative homes in Ravenshead with an extended lease were valued about £205,000. The mid-range amount of ground rent was £50 billed yearly. The lease expired in 2104. Considering the 79 years unexpired we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of legals.
Dr Matthew Edwards took over the lease of a first floor flat in Ravenshead in February 1999. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Ravenshead with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £65 invoiced annually. The lease ended in 2093. Having 68 years unexpired we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.