Ripley leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Ripley will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain cases you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Ripley valuers.
Subsequent to lengthy correspondence with the landlord of her one bedroom flat in Ripley, Holly initiated the lease extension process just as the lease was nearing the crucial eighty-year mark. The legal work was finalised in August 2012. The landlord’s costs were kept to an absolute minimum.
In 2012 we were contacted by Mr and Mrs. E Laurent who, having bought a first floor flat in Ripley in October 1997. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Ripley with an extended lease were worth £173,800. The average ground rent payable was £60 invoiced quarterly. The lease elapsed in 2081. Given that there were 55 years remaining we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.
Dr Chantelle James moved into a purpose-built flat in Ripley in May 2009. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Comparative homes in Ripley with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 billed annually. The lease ran out on 15 January 2092. Having 66 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.