Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Ravensthorpe. Clearly, the period of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Ravensthorpe have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful consideration before delaying your Ravensthorpe lease extension. Holding off the cost now simply increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ravensthorpe can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 in-depth market knowledge procuring Ravensthorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake owned a conversion flat in Ravensthorpe being marketed with a lease of a few days over 59 years remaining. Jake on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend 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 Jake to invoke his statutory right. Jake procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2013 we were called by Ms Phoebe Johnson who, having bought a purpose-built apartment in Ravensthorpe in June 2004. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparative residencies in Ravensthorpe with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 billed quarterly. The lease ended on 3 October 2104. Given that there were 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £7,600 and £8,800 exclusive of expenses.
In 2013 we were phoned by Mrs S Rose who, having moved into a recently refurbished apartment in Ravensthorpe in May 2010. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable premises in Ravensthorpe with a long lease were valued around £267,600. The average ground rent payable was £65 invoiced per annum. The lease finished on 5 August 2093. Having 67 years left we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 not including legals.