It’s an underpublicised truth that a Ringwood residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Ringwood property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Ringwood will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Skipton Building Society | |
| TSB |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Half a year ago Benjamin, came precariously close to the eighty-year mark with the lease on his two bedroom apartment in Ringwood. Having bought his property two decades ago, the unexpired term was of minimal bearing. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Benjamin was able to extend his lease at the eleventh hour in January. Benjamin and the freeholder via the management company eventually agreed on an amount of £6,000 . If the lease had dropped lower than 80 years, the premium would have become more exhorbitant by a minimum £850.
Ms J Brown bought a purpose-built apartment in Ringwood in July 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Ringwood with a long lease were in the region of £200,000. The average ground rent payable was £50 invoiced per annum. The lease elapsed on 21 November 2103. Considering the 77 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
In 2010 we were phoned by Dr A Bennett who, having moved into a garden apartment in Ringwood in October 1995. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative flats in Ringwood with a long lease were worth £265,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease came to a finish in 2092. Given that there were 66 years outstanding we calculated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of expenses.