Chances are that where you own a flat in The Ridgeway you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in The Ridgeway can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with The Ridgeway lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Hunter, started to get near to the 80-year mark with the lease on his basement apartment in The Ridgeway. In buying his flat twenty years ago, the unexpired term was of little significance. Luckily, he realised he would imminently be paying an escalated premium for Extending the lease. Hunter was able to extend his lease just in the nick of time in May. Hunter and the freeholder in the end settled on an amount of £5,500 . If he failed to meet the deadline, the sum would have gone up by a minimum £875.
Last Autumn we were phoned by Mr and Mrs. Y Smith , who bought a ground floor apartment in The Ridgeway in June 2007. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparable properties in The Ridgeway with a long lease were worth £264,000. The mid-range amount of ground rent was £60 billed annually. The lease finished in 2078. Taking into account 53 years unexpired we estimated the premium to the landlord for the lease extension to be within £37,100 and £42,800 not including costs.
An example of a Lease Extension matter before the tribunal for a The Ridgeway premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The unexpired residue of the current lease was 76 years.