The only way is down when it comes to Ripley lease terms. Ripley flats that have a lease term fewer than eighty years will de-escalate in value at a rapid rate, and the cost of extending your lease will go up.
Leasehold premises in Ripley with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you enhanced control over the value of your Ripley leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Logan owned a conversion apartment in Ripley on the market with a lease of a little over 72 years unexpired. Logan informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2012 we were e-mailed by Ms Ellen Thomas who, having took over the lease of a recently refurbished flat in Ripley in April 1995. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Ripley with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease expired on 28 February 2098. Having 73 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last year we were approach by Mr Logan Parker , who owned a ground floor apartment in Ripley in April 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Ripley with a long lease were in the region of £264,000. The average amount of ground rent was £60 collected every twelve months. The lease ended in 2078. Considering the 53 years unexpired we estimated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus professional charges.