Ramsey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Ramsey tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Ramsey you should check if your lease has between seventy 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 an element of the premium you pay is what is known as a marriage value
Leasehold premises in Ramsey with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ramsey can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 dealing with Ramsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Thomas owned a conversion flat in Ramsey on the market with a lease of a few days over 61 years outstanding. Thomas informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Thomas to exercise his statutory right. Thomas procured expert advice and secured an acceptable resolution informally and sell the property.
Mr and Mrs. T Mitchell bought a first floor apartment in Ramsey in February 1995. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical flats in Ramsey with a long lease were valued around £250,400. The average ground rent payable was £65 invoiced quarterly. The lease elapsed on 5 October 2090. Having 64 years outstanding we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 not including fees.
In 2010 we were approached by Mrs Courtney Moore who, having owned a first floor apartment in Ramsey in June 1999. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Ramsey with a long lease were worth £189,000. The average ground rent payable was £55 billed per annum. The lease end date was in 2079. Taking into account 53 years outstanding we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.