Ramsey leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Ramsey will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancing solicitors that we work with handle Ramsey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Jason, came critically near to the 80-year threshold with the lease on his purpose- built flat in Ramsey. Having bought his home two decades ago, the length of the lease was of no bearing. Fortunately, he became aware that he needed to take action soon on Extending the lease. Jason arranged for a lease extension just ahead of time in June. Jason and the freeholder via the management company subsequently settled on a premium of £5,000 . If he failed to meet the deadline, the amount would have escalated by at least £975.
Last Winter we were e-mailed by Mr and Mrs. P Mason , who bought a first floor flat in Ramsey in August 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable premises in Ramsey with 100 year plus lease were valued around £171,800. The average amount of ground rent was £55 collected annually. The lease came to a finish in 2076. Considering the 50 years remaining we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.
Last Winter we were approach by Mr and Mrs. I Green , who took over the lease of a first floor flat in Ramsey in March 2009. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative properties in Ramsey with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 collected per annum. The lease expired in 2096. Given that there were 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.