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 substantially once the unexpired lease term is less than eighty years
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| TSB |
Irrespective 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.
Max was the the leasehold proprietor of a 2 bedroom flat in Ringmer on the market with a lease of a few days over sixty years remaining. Max on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Max to exercise his statutory right. Max procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last month we were called by Mr and Mrs. O Morris , who completed a first floor apartment in Ringmer in February 1996. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar properties in Ringmer with an extended lease were valued about £267,600. The mid-range ground rent payable was £65 collected yearly. The lease expiry date was in 2093. Considering the 67 years unexpired we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus costs.
In 2014 we were approached by Dr P Robinson who, having took over the lease of a one bedroom apartment in Ringmer in January 2012. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative premises in Ringmer with an extended lease were valued about £206,200. The average ground rent payable was £60 invoiced monthly. The lease ended in 2082. Considering the 56 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of costs.