Ringwood leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Ringwood will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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.
Ryan was the the leasehold owner of a conversion apartment in Ringwood being sold with a lease of a few days over 61 years left. Ryan on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. 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 doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ryan to invoke his statutory right. Ryan procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
In 2010 we were contacted by Mrs Isabel Hill who, having bought a purpose-built apartment in Ringwood in July 1997. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical residencies in Ringwood with 100 year plus lease were valued about £198,800. The average ground rent payable was £55 billed monthly. The lease expired in 2080. Considering the 55 years remaining we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of fees.
Dr Matthew Wood bought a one bedroom flat in Ringwood in March 2010. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical homes in Ringwood with an extended lease were valued around £300,000. The average ground rent payable was £50 invoiced monthly. The lease lapsed in 2100. Considering the 75 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.