The value of Crawcrook and Ryton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is less than 80 years
Leasehold premises in Crawcrook and Ryton with more than one hundred 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Using our service will provide you enhanced control over the value of your Crawcrook and Ryton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Noah owned a studio flat in Crawcrook and Ryton on the market with a lease of a few days over 72 years unexpired. Noah on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Last Christmas we were called by Mrs Lydia Roux , who acquired a studio flat in Crawcrook and Ryton in September 2007. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable homes in Crawcrook and Ryton with an extended lease were worth £265,000. The mid-range ground rent payable was £50 collected annually. The lease expired in 2099. Considering the 73 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Mr E Johnson owned a recently refurbished apartment in Crawcrook and Ryton in June 1996. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Crawcrook and Ryton with a long lease were in the region of £264,000. The average amount of ground rent was £60 invoiced annually. The lease terminated on 18 April 2079. Taking into account 53 years outstanding we estimated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including legals.