Crawcrook and Ryton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Crawcrook and Ryton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Crawcrook and Ryton you really ought to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| Royal Bank of Scotland |
Retaining our service will provide you better control over the value of your Crawcrook and Ryton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Ibrahim, came perilously close to the eighty-year mark with the lease on his two bedroom apartment in Crawcrook and Ryton. In buying his property two decades ago, the unexpired term was of no relevance. Luckily, he realised he needed to take steps soon on Extending the lease. Ibrahim extended the lease just under the wire last May. Ibrahim and the landlord who owned the flat above in the end settled on a premium of £6,000 . If he not met the deadline, the premium would have increased by a minimum £975.
Dr Jason Davis completed a purpose-built apartment in Crawcrook and Ryton in August 2002. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparable premises in Crawcrook and Ryton with a long lease were worth £208,200. The average ground rent payable was £65 invoiced per annum. The lease terminated on 27 August 2087. Taking into account 61 years left we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus expenses.
In 2009 we were e-mailed by Mr and Mrs. W Khan who, having owned a studio flat in Crawcrook and Ryton in February 1998. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparable residencies in Crawcrook and Ryton with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease finished on 12 September 2098. Given that there were 72 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.