Ripley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Ripley tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Ripley you should see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Regardless of whether you are a tenant or a landlord in Ripley,the lease extension solicitors that we work with will always be prepared 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.
In the wake of eight months of lengthy discussions with the landlord of her leasehold flat in Ripley, Chloe commenced the lease extension process as the eighty year deadline was swiftly coming. The legal work was finalised in October 2008. The landlord’s charges were negotiated to approximately 700 GBP.
In 2010 we were phoned by Mr and Mrs. V Gray who, having took over the lease of a studio flat in Ripley in May 1998. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative homes in Ripley with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 invoiced every twelve months. The lease termination date was in 2104. Given that there were 80 years unexpired we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
Last Summer we were phoned by Dr Liam Hall , who purchased a one bedroom flat in Ripley in October 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in Ripley with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 collected per annum. The lease ended in 2084. Having 60 years as a residual term we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus costs.