The only way is down when it comes to Ripley lease terms. Ripley flats that have a residual term lower than 80 years will de-escalate in market price at a rapid rate, and the cost of extending your lease will increase.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Ripley 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 lawyer we work with provide it.
After unsuccessful negotiations with the landlord of her first floor flat in Ripley, Kelsey commenced the lease extension process just as her lease was coming close to the critical 80-year mark. The legal work was concluded in March 2014. The landlord’s fees were restricted to a tad over 700 GBP.
Last Autumn we were phoned by Mrs A Sharif , who took over the lease of a garden apartment in Ripley in January 1996. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable properties in Ripley with an extended lease were worth £166,400. The mid-range amount of ground rent was £60 collected monthly. The lease lapsed on 16 March 2079. Having 54 years remaining we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of fees.
Last Autumn we were e-mailed by Dr Francesca Wood , who acquired a one bedroom apartment in Ripley in March 2005. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical premises in Ripley with an extended lease were valued around £227,800. The mid-range ground rent payable was £45 billed annually. The lease ran out in 2090. Taking into account 65 years left we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.