Ramsey leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease dips lower than 80 years - otherwise a higher amount will be due. Flat owners in Ramsey will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Ramsey can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
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 procuring Ramsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the landlord of her one bedroom flat in Ramsey, Aimee started the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in July 2014. The landlord’s charges were kept to an absolute minimum.
Last Spring we were approach by Mr and Mrs. V Pérez , who bought a garden apartment in Ramsey in April 2007. The dilemma was if we could approximate the price could be to prolong the lease by 90 years. Comparable premises in Ramsey with 100 year plus lease were valued about £230,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease lapsed on 21 May 2086. Taking into account 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 exclusive of fees.
In 2014 we were e-mailed by Dr J Bell who, having completed a newly refurbished flat in Ramsey in February 2012. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Identical residencies in Ramsey with a long lease were worth £210,000. The mid-range ground rent payable was £50 collected yearly. The lease finished in 2106. Taking into account 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.