The closer a domestic lease in Ripley gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. Many flat owners in Ripley will qualify for this right; that being said a conveyancing solicitor will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Ripley with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Ripley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ripley valuers.
Lucas was the the leasehold proprietor of a 2 bedroom apartment in Ripley on the market with a lease of fraction over 59 years left. Lucas on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last Winter we were phoned by Mr and Mrs. V Bernard , who took over the lease of a one bedroom apartment in Ripley in March 1998. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical properties in Ripley with an extended lease were valued around £191,000. The average amount of ground rent was £65 billed monthly. The lease ran out on 25 August 2083. Given that there were 58 years left we approximated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 not including fees.
In 2012 we were phoned by Mr and Mrs. E Miller who, having was assigned a lease of a one bedroom apartment in Ripley in October 2010. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable homes in Ripley with a long lease were valued about £250,000. The average amount of ground rent was £50 collected yearly. The lease ended in 2094. Given that there were 69 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.