The Ridgeway leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in The Ridgeway enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in The Ridgeway you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in The Ridgeway with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in The Ridgeway can be a difficult process. We recommend you secure guidance from a conveyancer 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 in-depth market knowledge procuring 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.
Trailing protracted negotiations with the landlord of her basement apartment in The Ridgeway, Amelia started the lease extension process just as the lease was nearing the crucial 80-year threshold. The lease extension was concluded in February 2009. The freeholder’s costs were kept to an absolute minimum.
Last February we were e-mailed by Dr S Bernard , who owned a ground floor flat in The Ridgeway in March 2008. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar homes in The Ridgeway with 100 year plus lease were worth £242,600. The average ground rent payable was £45 collected per annum. The lease lapsed on 1 June 2093. Taking into account 67 years left we estimated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus fees.
An example of a Lease Extension decision for a The Ridgeway property 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 remaining number of years on the lease was 76 years.