When it comes to residential leasehold premises in Ringwood, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Ringwood with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has under 80 years outstanding, under the current Act the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Ringwood,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ringwood valuers.
Following unsuccessful correspondence with the freeholder of her purpose-built flat in Ringwood, Amber commenced the lease extension process just as her lease was approaching the all-important eighty-year deadline. The transaction completed in August 2009. The landlord’s fees were restricted to approximately four hundred GBP.
Last Spring we were phoned by Mrs C Reed , who moved into a basement flat in Ringwood in April 1996. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative flats in Ringwood with 100 year plus lease were valued about £257,800. The mid-range amount of ground rent was £65 collected yearly. The lease termination date was on 24 August 2091. Given that there were 65 years left we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of legals.
Last April we were contacted by Mr and Mrs. N Morgan , who bought a one bedroom apartment in Ringwood in April 1997. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in Ringwood with a long lease were in the region of £196,400. The mid-range ground rent payable was £55 billed monthly. The lease expired on 6 April 2080. Considering the 54 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £35,200 and £40,600 exclusive of legals.