The market value of a leasehold property in Ramsey is impacted by how long the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be finalised ahead of the eighty year threshold. Current legislation enables Ramsey qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service gives you increased control over the value of your Ramsey leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the landlord of her leasehold flat in Ramsey, Phoebe started the lease extension process as the 80 year mark was quickly advancing. The transaction was concluded in November 2007. The freeholder’s fees were negotiated to under 700 pounds.
Dr Kyle Gray acquired a garden flat in Ramsey in November 2012. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative premises in Ramsey with an extended lease were worth £275,000. The average amount of ground rent was £65 billed per annum. The lease terminated in 2094. Having 68 years remaining we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Ms S Roberts bought a one bedroom flat in Ramsey in September 2004. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparative properties in Ramsey with 100 year plus lease were worth £213,600. The average amount of ground rent was £60 collected every twelve months. The lease terminated on 4 July 2083. Having 57 years as a residual term we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including professional charges.