Chances are that where you own a flat in Ripley you actually own a long leasehold interest over your property
Leasehold properties in Ripley with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Ripley,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ripley valuers.
Off the back of unsuccessful discussions with the landlord of her garden flat in Ripley, Amber started the lease extension process as the 80 year mark was quickly nearing. The legal work was concluded in May 2010. The landlord’s fees were negotiated to approximately five hundred GBP.
Last Spring we were contacted by Dr Jayden Cox , who purchased a one bedroom flat in Ripley in January 1995. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Ripley with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected quarterly. The lease came to a finish in 2081. Given that there were 56 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus fees.
Dr L Watson purchased a ground floor flat in Ripley in June 2000. The question was if we could estimate the premium could be to prolong the lease by 90 years. Comparative premises in Ripley with 100 year plus lease were in the region of £242,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease ended on 3 March 2092. Considering the 67 years as a residual term we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including fees.