There is no doubt about it a leasehold property in Ramsey is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 99 years to run then this decrease may be fractional nevertheless 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 rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Ramsey will qualify for this right; however a lawyer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Ramsey can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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.
Subsequent to protracted correspondence with the freeholder of her basement flat in Ramsey, Chloe initiated the lease extension process as the 80 year threshold was fast coming. The lease extension completed in September 2015. The landlord’s charges were kept to an absolute minimum.
Dr Jennifer Ali purchased a newly refurbished apartment in Ramsey in May 1996. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparative properties in Ramsey with a long lease were valued about £200,000. The average amount of ground rent was £50 billed monthly. The lease ran out on 9 January 2103. Given that there were 77 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Last Spring we were phoned by Dr Elijah Mitchell , who acquired a garden flat in Ramsey in May 2003. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Comparative premises in Ramsey with an extended lease were in the region of £265,200. The average amount of ground rent was £65 billed monthly. The lease ran out in 2092. Taking into account 66 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus costs.