Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ripley. Inevitably, the term of lease left reduces as time goes by. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Ripley have the legal entitlement to extend the lease for an additional 90 years under statute. Do give careful deliberation before delaying your Ripley lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease
Leasehold properties in Ripley with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Retaining our service will provide you increased control over the value of your Ripley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Owen, came dangerously near to the eighty-year mark with the lease on his ground floor flat in Ripley. Having bought his property two decades ago, the length of the lease was of little significance. by good luck, it dawned on him that he would soon be paying an inflated amount for a lease extension. Owen was able to extend his lease at the eleventh hour in May. Owen and the freeholder via the management company in the end settled on sum of £6,000 . If the lease had dipped to less than eighty years, the premium would have escalated by a minimum £975.
Last Summer we were called by Mr and Mrs. C Davies , who was assigned a lease of a basement apartment in Ripley in April 1995. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical residencies in Ripley with a long lease were in the region of £250,000. The average ground rent payable was £50 billed quarterly. The lease elapsed on 3 October 2095. Given that there were 69 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
In 2014 we were phoned by Dr Francesca Hill who, having completed a one bedroom flat in Ripley in February 2002. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical premises in Ripley with a long lease were valued around £290,000. The average amount of ground rent was £60 billed annually. The lease terminated on 3 March 2106. Given that there were 80 years remaining we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.