Ringmer leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Ringmer will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Ringmer with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 experts 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.
Callum owned a high value apartment in Ringmer being marketed with a lease of fraction over fifty eight years remaining. Callum on an informal basis contacted his landlord a well known Manchester-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 £50 annually. Ordinarily, ground rent would not be due on a lease extension were Callum to invoke his statutory right. Callum procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2011 we were approached by Ms L Bonnet who, having was assigned a lease of a purpose-built flat in Ringmer in February 2011. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparative flats in Ringmer with 100 year plus lease were worth £198,800. The average ground rent payable was £55 collected every twelve months. The lease ended in 2081. Taking into account 55 years left we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus legals.
In 2011 we were phoned by Mr and Mrs. L Johnson who, having bought a first floor flat in Ringmer in February 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Ringmer with a long lease were valued around £300,000. The mid-range ground rent payable was £50 billed per annum. The lease ran out in 2101. Given that there were 75 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.