When it comes to domestic leasehold property in The Ridgeway, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than eighty years remaining. Leasehold owners in The Ridgeway with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under eighty years left, under the current Act the freeholder is entitled to calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in The Ridgeway with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in The Ridgeway can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience 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.
Last Summer Dexter, came dangerously close to the eighty-year threshold with the lease on his leasehold flat in The Ridgeway. In buying his flat 18 years ago, the lease term was of no interest. Thankfully, it dawned on him that he would imminently be paying way over the odds for a lease extension. Dexter arranged for a lease extension just in the nick of time last June. Dexter and the freeholder via the managing agents subsequently settled on an amount of £5,500 . If he not met the deadline, the figure would have become more exhorbitant by at least £1,150.
In 2010 we were approached by Mr and Mrs. D Walker who, having acquired a basement apartment in The Ridgeway in April 2003. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar residencies in The Ridgeway with a long lease were in the region of £260,000. The average ground rent payable was £50 collected monthly. The lease ran out on 12 April 2098. Considering the 72 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus 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 affected 13 flats. The unexpired term was 76 years.