Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Ripley. Inevitably, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Ripley have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful deliberation before delaying your Ripley lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Ripley with more than 100 years remaining 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 purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Ripley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the freeholder of her one bedroom apartment in Ripley, Sarah commenced the lease extension process as the eighty year threshold was swiftly advancing. The transaction was concluded in February 2009. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. K Kelly bought a first floor flat in Ripley in September 2006. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Ripley with a long lease were worth £176,200. The average ground rent payable was £65 invoiced yearly. The lease terminated in 2082. Having 56 years left we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including legals.
Last May we were approach by Dr J Moore , who acquired a one bedroom flat in Ripley in January 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable flats in Ripley with 100 year plus lease were worth £242,600. The mid-range amount of ground rent was £45 billed monthly. The lease elapsed on 15 August 2093. Taking into account 67 years outstanding we estimated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including professional charges.