The market value of Ripley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is below than eighty years
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Lease extensions in Ripley can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Ripley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy negotiations with the freeholder of her two bedroom apartment in Ripley, Anna commenced the lease extension process just as her lease was approaching the all-important eighty-year threshold. The legal work was finalised in February 2013. The landlord’s costs were kept to an absolute minimum.
Last year we were contacted by Dr Jason Thomas , who took over the lease of a studio apartment in Ripley in September 2002. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Similar properties in Ripley with 100 year plus lease were in the region of £245,000. The average amount of ground rent was £50 invoiced yearly. The lease expiry date was on 20 April 2094. Taking into account 68 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
In 2009 we were called by Mr and Mrs. U Ramírez who, having bought a one bedroom apartment in Ripley in November 1995. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative residencies in Ripley with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish on 15 July 2105. Given that there were 79 years outstanding we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.