Ripley residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Ripley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Benjamin was the the leasehold proprietor of a conversion flat in Ripley on the market with a lease of just over 59 years outstanding. Benjamin on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
In 2013 we were approached by Mr and Mrs. D François who, having took over the lease of a one bedroom flat in Ripley in November 2002. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Identical flats in Ripley with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected quarterly. The lease terminated in 2093. Taking into account 68 years remaining we approximated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus costs.
Last Autumn we were called by Ms Rhiannon Hernández , who took over the lease of a basement apartment in Ripley in August 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical properties in Ripley with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 collected every twelve months. The lease expiry date was in 2104. Given that there were 79 years left we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.