Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Ravensthorpe. Clearly, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the flat or house has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Ravensthorpe have the legal entitlement to extend the lease for a further ninety years under statute. Please give careful consideration before delaying your Ravensthorpe lease extension. Putting off that expense now likely increases the price you will eventually have to pay to extend your lease
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ravensthorpe can be a difficult process. We recommend you obtain professional help from a conveyancer 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 Ravensthorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac owned a high value flat in Ravensthorpe on the market with a lease of fraction over 72 years left. Isaac on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
In 2012 we were approached by Mr and Mrs. G Wright who, having took over the lease of a basement apartment in Ravensthorpe in March 2006. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Ravensthorpe with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 collected yearly. The lease expired in 2098. Considering the 73 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
Mr and Mrs. M Reed acquired a studio flat in Ravensthorpe in June 1998. The dilemma was if we could estimate the price could be for a ninety year lease extension. Identical residencies in Ravensthorpe with a long lease were in the region of £240,600. The average ground rent payable was £65 invoiced per annum. The lease ran out in 2087. Taking into account 62 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of fees.