There is no doubt about it a leasehold flat or house in Ramsey is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 99 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. The majority of flat owners in Ramsey will meet the qualifying criteria; nevertheless a lawyer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Ramsey with in excess of 100 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 freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| 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. |
| 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 |
The conveyancing solicitors that we work with handle Ramsey 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 lawyer we work with provide it.
In 2014 Blake, came perilously near to the 80-year threshold with the lease on his ground floor apartment in Ramsey. In buying his property two decades ago, the lease term was of minimal significance. Fortunately, he noticed he needed to take action soon on a lease extension. Blake was able to extend his lease just under the wire in September. Blake and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If the lease had fallen to less than eighty years, the figure would have become more exhorbitant by at least £925.
Ms Holly Ali was assigned a lease of a one bedroom flat in Ramsey in October 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Ramsey with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed quarterly. The lease expired on 14 September 2078. Taking into account 52 years remaining we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus expenses.
Last Autumn we were e-mailed by Ms G Turner , who moved into a newly refurbished flat in Ramsey in February 2001. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable homes in Ramsey with a long lease were worth £290,000. The average ground rent payable was £45 collected monthly. The lease end date was on 1 June 2098. Given that there were 72 years unexpired we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.