There is no doubt about it a leasehold property in Ravensthorpe is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Many flat owners in Ravensthorpe will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Ravensthorpe with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Ravensthorpe leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her first floor apartment in Ravensthorpe, Aimee initiated the lease extension process just as the lease was nearing the all-important eighty-year mark. The transaction completed in January 2012. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. J Robinson purchased a one bedroom apartment in Ravensthorpe in August 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Ravensthorpe with an extended lease were valued around £265,200. The average amount of ground rent was £65 collected yearly. The lease terminated on 2 June 2092. Given that there were 66 years remaining we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of professional charges.
Last month we were phoned by Mr Henry Harris , who purchased a one bedroom apartment in Ravensthorpe in February 2012. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable flats in Ravensthorpe with an extended lease were worth £198,800. The average amount of ground rent was £55 billed yearly. The lease ran out in 2081. Having 55 years outstanding we approximated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of professional charges.