Ravenshead leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Ravenshead will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Ravenshead with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Lease extensions in Ravenshead can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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.
George was the the leasehold proprietor of a studio flat in Ravenshead being sold with a lease of just over sixty years remaining. George on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were George to exercise his statutory right. George procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2009 we were called by Dr H Gómez who, having owned a purpose-built flat in Ravenshead in October 1997. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable properties in Ravenshead with a long lease were valued about £252,800. The average amount of ground rent was £65 billed quarterly. The lease concluded in 2091. Considering the 65 years unexpired we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus expenses.
In 2009 we were contacted by Dr T Leroy who, having purchased a one bedroom apartment in Ravenshead in January 2009. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Ravenshead with a long lease were worth £191,400. The average amount of ground rent was £55 collected per annum. The lease expiry date was on 20 July 2080. Taking into account 54 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of costs.