The value of Ramsey leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is below than eighty years
Leasehold residencies in Ramsey with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Ramsey leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her first floor apartment in Ramsey, Ashleigh started the lease extension process just as her lease was coming close to the all-important 80-year threshold. The legal work was finalised in March 2006. The freeholder’s costs were restricted to less than 650 GBP.
Last Autumn we were phoned by Mr B Pérez , who bought a garden flat in Ramsey in June 2010. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar properties in Ramsey with 100 year plus lease were valued around £174,200. The average amount of ground rent was £55 collected yearly. The lease finished in 2076. Given that there were 51 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.
Last Winter we were contacted by Mrs D Nguyen , who was assigned a lease of a purpose-built apartment in Ramsey in October 2012. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative flats in Ramsey with a long lease were worth £285,000. The mid-range ground rent payable was £45 collected annually. The lease terminated in 2096. Having 71 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.