The 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 significantly once the remaining term is less than eighty years
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ripley can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 in-depth market knowledge 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.
Matthew owned a high value flat in Ripley on the market with a lease of a few days over 72 years unexpired. Matthew on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Mr and Mrs. W Garcia completed a one bedroom apartment in Ripley in September 2002. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Ripley with a long lease were valued about £208,200. The mid-range amount of ground rent was £65 billed monthly. The lease termination date was in 2087. Taking into account 61 years left we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including expenses.
Mr and Mrs. C Thomas bought a ground floor apartment in Ripley in April 2009. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative flats in Ripley with a long lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease lapsed in 2098. Having 72 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.