It’s an underpublicised truth that a Crawcrook and Ryton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Crawcrook and Ryton property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half 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 extra 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 will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is generally accepted that a property 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 left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Crawcrook and Ryton 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 conveyancing solicitor we work with provide it.
Toby was the the leasehold proprietor of a high value flat in Crawcrook and Ryton on the market with a lease of a little over sixty years left. Toby informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Toby to exercise his statutory right. Toby obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2011 we were contacted by Mr Felix Rodríguez who, having bought a ground floor apartment in Crawcrook and Ryton in April 1998. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar homes in Crawcrook and Ryton with a long lease were valued about £168,800. The average ground rent payable was £60 invoiced yearly. The lease came to a finish in 2081. Given that there were 55 years unexpired we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus legals.
Last Spring we were phoned by Mr Andrew Lefebvre , who acquired a garden apartment in Crawcrook and Ryton in April 2012. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar premises in Crawcrook and Ryton with a long lease were in the region of £232,800. The average ground rent payable was £45 billed monthly. The lease end date was on 17 January 2091. Taking into account 65 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.