It’s a harsh truth that a Ripley residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Ripley property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Ripley will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Ripley with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service will provide you better control over the value of your Ripley leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the landlord of her leasehold flat in Ripley, Amelia started the lease extension process as the eighty year deadline was swiftly approaching. The legal work was concluded in November 2012. The freeholder’s fees were kept to an absolute minimum.
Mr Jake Robinson purchased a basement apartment in Ripley in November 1998. The question was if we could estimate the price would be to prolong the lease by ninety years. Comparative flats in Ripley with a long lease were worth £280,000. The mid-range amount of ground rent was £55 collected yearly. The lease expired on 17 March 2102. Having 77 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.
In 2010 we were contacted by Mr William Hernández who, having bought a first floor flat in Ripley in June 2012. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar homes in Ripley with a long lease were valued about £183,600. The average amount of ground rent was £65 collected every twelve months. The lease concluded on 10 April 2082. Considering the 57 years outstanding we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.