The market value of a leasehold property in Ramsey depends on how many years the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be concluded well before the eighty year threshold. Statute enables Ramsey qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Ramsey with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date 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 conveyancing solicitor and surveyor with experience in lease extensions.
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.
Off the back of unsuccessful negotiations with the freeholder of her first floor apartment in Ramsey, Niamh started the lease extension process as the 80 year deadline was rapidly approaching. The legal work was concluded in April 2010. The landlord’s charges were kept to an absolute minimum.
In 2010 we were approached by Dr Max Ali who, having took over the lease of a one bedroom apartment in Ramsey in April 2001. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative properties in Ramsey with a long lease were in the region of £300,000. The average amount of ground rent was £50 invoiced per annum. The lease elapsed in 2102. Given that there were 76 years remaining we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.
Mrs I Rodríguez bought a first floor flat in Ramsey in September 1997. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative flats in Ramsey with an extended lease were valued around £257,800. The average amount of ground rent was £65 invoiced quarterly. The lease lapsed on 22 January 2091. Having 65 years remaining we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including fees.