For those whose Ramsey home is held on a long lease, our message is clear – if you do nothing, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold properties in Ramsey with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a freeholder in Ramsey,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ramsey valuers.
Harvey was the the leasehold owner of a high value apartment in Ramsey on the market with a lease of a little over fifty eight years left. Harvey on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last Autumn we were contacted by Dr Alice Ramírez , who completed a garden apartment in Ramsey in February 2011. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Identical properties in Ramsey with an extended lease were worth £223,400. The mid-range ground rent payable was £60 collected quarterly. The lease ran out in 2084. Considering the 59 years as a residual term we approximated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of costs.
In 2013 we were phoned by Dr Connor Adams who, having completed a one bedroom apartment in Ramsey in July 2005. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative premises in Ramsey with a long lease were worth £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished in 2104. Given that there were 79 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.