Ringmer leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease falls below eighty years - otherwise a higher amount will be payable. Leasehold owners in Ringmer will usually qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Ringmer with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Ringmer,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ringmer valuers.
Milo owned a 2 bedroom apartment in Ringmer on the market with a lease of just over 72 years unexpired. Milo informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
Mr B Harris acquired a ground floor flat in Ringmer in February 2012. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparative flats in Ringmer with a long lease were valued around £275,000. The average ground rent payable was £45 collected annually. The lease concluded on 14 January 2094. Taking into account 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.
Mr T Dupont moved into a one bedroom apartment in Ringmer in February 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Ringmer with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out on 3 November 2083. Given that there were 58 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including fees.