As the the remaining lease term of a Ripley domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Ripley will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Ripley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ripley valuers.
Two years ago Joseph, came seriously near to the eighty-year threshold with the lease on his basement apartment in Ripley. Having bought his flat 19 years previously, the length of the lease was of little importance. Thankfully, he noticed he needed to take action soon on a lease extension. Joseph was able to extend his lease just ahead of time in June. Joseph and the freeholder via the management company eventually settled on an amount of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £925.
Last Spring we were called by Mr K Gómez , who took over the lease of a purpose-built flat in Ripley in November 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Ripley with a long lease were in the region of £173,800. The mid-range ground rent payable was £60 billed every twelve months. The lease ended in 2080. Considering the 55 years as a residual term we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.
Last Spring we were contacted by Mr and Mrs. A Reed , who owned a newly refurbished apartment in Ripley in November 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Ripley with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 billed monthly. The lease finished on 25 July 2091. Having 66 years outstanding we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.