The market value of Ringmer leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the unexpired lease term is below than 80 years
Leasehold premises in Ringmer with in excess of one hundred years left on the lease are sometimes 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Ringmer,the lease extension lawyers that we work with will always be willing 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.
Last Christmas Milo, started to get near to the 80-year threshold with the lease on his one bedroom flat in Ringmer. Having bought his property two decades ago, the lease term was of little importance. by good luck, he realised he needed to take action soon on Extending the lease. Milo extended the lease at the eleventh hour last July. Milo and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had gone lower than 80 years, the price would have gone up by a minimum £1,025.
Last Spring we were approach by Mr and Mrs. M Richardson , who completed a recently refurbished flat in Ringmer in March 2007. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical premises in Ringmer with an extended lease were in the region of £240,600. The average ground rent payable was £60 invoiced quarterly. The lease concluded on 5 November 2088. Considering the 62 years remaining we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus fees.
Dr N Nelson completed a newly refurbished apartment in Ringmer in April 2001. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical premises in Ringmer with a long lease were valued about £174,200. The average amount of ground rent was £55 invoiced every twelve months. The lease terminated on 20 June 2077. Having 51 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including professional charges.