It’s an underpublicised truth that a Crawcrook and Ryton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Crawcrook and Ryton property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term slips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Crawcrook and Ryton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service gives you better control over the value of your Crawcrook and Ryton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Ryan, came precariously near to the 80-year mark with the lease on his purpose- built apartment in Crawcrook and Ryton. In buying his flat 18 years ago, the unexpired term was of minimal relevance. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Ryan was able to extend his lease at the eleventh hour in April. Ryan and the freeholder via the management company eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have increased by at least £850.
Last Spring we were called by Mr and Mrs. D Rose , who took over the lease of a one bedroom apartment in Crawcrook and Ryton in July 2000. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative flats in Crawcrook and Ryton with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 billed monthly. The lease elapsed on 2 April 2097. Taking into account 72 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
Mr and Mrs. Y Vincent acquired a ground floor apartment in Crawcrook and Ryton in May 2004. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative premises in Crawcrook and Ryton with an extended lease were in the region of £256,600. The average ground rent payable was £60 invoiced monthly. The lease concluded in 2077. Having 52 years left we estimated the premium to the landlord for the lease extension to be within £41,800 and £48,400 exclusive of fees.