Why you should start your Ringwood lease extension

Main reasons to start your Ringwood lease extension today:

A Ringwood leasehold property depreciates with the years remaining on the lease.

Ringwood leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Ringwood residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ringwood you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Ringwood property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions may decide not to lend with a short lease

Mortgage lenders have specific criteria when lending funds charged on leasehold property. Many will simply refrain from lending at all once an unexpired lease term goes below a specified unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than seventy years suitable security. As well as impacting your ability to sell, it is also relevant if you are intending to refinance your Ringwood home.

Get in touch with one of our Ringwood lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake Ringwood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Ringwood Lease Extension Example Cases:

Rebecca, Ringwood, Hampshire,

Off the back of protracted negotiations with the freeholder of her one bedroom flat in Ringwood, Rebecca initiated the lease extension process just as her lease was nearing the all-important eighty-year threshold. The legal work was finalised in March 2005. The landlord’s charges were kept to an absolute minimum.

Ringwood case:

In 2012 we were phoned by Mr and Mrs. L Ramírez who, having bought a basement flat in Ringwood in February 2001. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Identical flats in Ringwood with a long lease were worth £216,000. The average ground rent payable was £60 billed yearly. The lease terminated in 2084. Taking into account 58 years left we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.

Ringwood case:

In 2013 we were contacted by Dr U Ward who, having moved into a recently refurbished flat in Ringwood in September 2011. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical flats in Ringwood with an extended lease were in the region of £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease lapsed on 17 March 2104. Taking into account 78 years unexpired we estimated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 not including costs.