Unfortunately that a Ripley residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Ripley property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term slips under eighty years, you will end up paying 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 extra value that a lease extension will add the property The majority of leasehold owners in Ripley will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Ripley with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | 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.
Jason owned a conversion flat in Ripley on the market with a lease of just over 72 years unexpired. Jason on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to invoke his statutory right. Jason procured expert advice and secured an acceptable resolution informally and readily saleable.
Mr C Ward purchased a purpose-built flat in Ripley in April 2006. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative homes in Ripley with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 collected every twelve months. The lease ended in 2090. Considering the 64 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including costs.
Last Summer we were e-mailed by Mr and Mrs. M Patel , who took over the lease of a one bedroom apartment in Ripley in November 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Ripley with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish on 24 March 2101. Taking into account 75 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.