Chances are that if you own a flat in Ringwood you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
Lease extensions in Ringwood can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer 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 a wealth of experience procuring Ringwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Zachary, came precariously near to the eighty-year threshold with the lease on his purpose- built apartment in Ringwood. In buying his flat two decades ago, the unexpired term was of little concern. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Zachary was able to extend his lease just under the wire last September. Zachary and the landlord in the end settled on an amount of £5,000 . If the lease had slid to less than 80 years, the price would have escalated by a minimum £1,125.
Mr and Mrs. I Rodríguez took over the lease of a purpose-built flat in Ringwood in June 2012. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Ringwood with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed on 6 January 2079. Considering the 53 years remaining we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus expenses.
In 2009 we were e-mailed by Mr and Mrs. A Davis who, having purchased a one bedroom flat in Ringwood in August 1999. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative homes in Ringwood with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed on 7 June 2099. Having 73 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.