Unfortunately that a Ravenshead residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Ravenshead property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term drops below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Ravenshead will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank |
Regardless of whether you are a tenant or a freeholder in Ravenshead,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ravenshead valuers.
George owned a conversion flat in Ravenshead on the market with a lease of just over 59 years remaining. George informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
Last Winter we were contacted by Mr and Mrs. P García , who moved into a newly refurbished apartment in Ravenshead in November 1998. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable premises in Ravenshead with a long lease were valued around £200,000. The average amount of ground rent was £50 collected yearly. The lease expired in 2103. Taking into account 77 years left we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.
In 2014 we were e-mailed by Mrs Kate Parker who, having acquired a one bedroom flat in Ravenshead in June 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Ravenshead with an extended lease were worth £260,200. The average ground rent payable was £65 billed monthly. The lease expired on 25 May 2092. Given that there were 66 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 not including costs.