For those whose Ringwood flat is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold premises in Ringwood with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Ringwood leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Teddy, started to get close to the eighty-year mark with the lease on his basement flat in Ringwood. Having purchased his flat two decades ago, the lease term was of little bearing. Luckily, he realised he needed to take action soon on a lease extension. Teddy arranged for a lease extension just under the wire in May. Teddy and the freeholder via the managing agents ultimately agreed on the final figure of £5,000 . If the lease had fallen to less than eighty years, the sum would have increased by a minimum £850.
In 2009 we were phoned by Ms W Young who, having purchased a studio apartment in Ringwood in March 2010. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparative properties in Ringwood with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease lapsed in 2104. Given that there were 79 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Mrs Isabelle Edwards completed a one bedroom apartment in Ringwood in January 2005. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable flats in Ringwood with an extended lease were in the region of £275,000. The average ground rent payable was £65 invoiced monthly. The lease elapsed in 2093. Given that there were 68 years left we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.