Main reasons to start your Ripley lease extension

Main reasons to commence your Ripley lease extension today:

A Ripley lease depreciates with the years remaining on the lease.

When it comes to long leasehold property in Ripley, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in Ripley with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years left, under the current Act the freeholder can calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Mortgage lenders will not grant a mortgage with a short lease

Most banks and building societies require a lengthy amount of time remaining on a leasehold residence before they will consider providing a mortgage on it. Regardless of whether you require a mortgage, you should keep in mind that it is likely that someone intending to buy your property in the future might well do, so where they can't get a mortgage, then the market price of the property could be adversely impacted. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to accept

Get in touch with one of our Ripley lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake 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 lawyer we work with provide it.

Ripley Lease Extension Case Summaries:

Lydia, Ripley, Derbyshire,

Subsequent to lengthy negotiations with the freeholder of her first floor flat in Ripley, Lydia started the lease extension process just as her lease was approaching the critical 80-year deadline. The legal work completed in March 2005. The landlord’s charges were restricted to slightly above 500 GBP.

Ripley case:

Mrs Georgia Mitchell was assigned a lease of a garden flat in Ripley in October 2009. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable flats in Ripley with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 billed per annum. The lease elapsed in 2105. Given that there were 79 years remaining we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.

Ripley case:

In 2013 we were called by Ms Catherine Alexander who, having took over the lease of a recently refurbished apartment in Ripley in November 2004. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar flats in Ripley with an extended lease were in the region of £193,400. The average ground rent payable was £65 collected annually. The lease terminated in 2085. Considering the 59 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including legals.