Why you should start your Ripon lease extension

Top reasons for lease extension now:

A Ripon lease depreciates with the years remaining on the lease.

The only way is down when it comes to Ripon lease terms. Ripon properties that have a residual term less than than eighty years will de-escalate in market price at a rapid rate, and the cost of extending your lease will increase.

An extended lease has roughly the same value as a freehold

Leasehold premises in Ripon with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders will not finance a property with a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Ripon?

The lawyers that we work with undertake Ripon 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 conveyancing solicitor we work with provide it.

Ripon Lease Extension Example Cases:

Austin, Ripon, North Yorkshire,

Austin owned a high value flat in Ripon on the market with a lease of a little over sixty years unexpired. Austin informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Austin to exercise his statutory right. Austin procured expert legal guidance and secured satisfactory resolution informally and readily saleable.

Ripon case:

Mr and Mrs. V Thompson completed a first floor flat in Ripon in January 2006. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative homes in Ripon with 100 year plus lease were valued around £218,000. The mid-range ground rent payable was £45 collected per annum. The lease ran out on 20 August 2089. Considering the 63 years remaining we calculated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 plus costs.

Ripon case:

In 2012 we were approached by Dr Laura Moreau who, having completed a one bedroom apartment in Ripon in May 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative premises in Ripon with 100 year plus lease were worth £265,000. The average ground rent payable was £50 collected annually. The lease ran out in 2100. Given that there were 74 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.