The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Crawcrook and Ryton can extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Crawcrook and Ryton lease extension. Putting off the costs now simply increases the premium you will eventually be required to pay to extend the lease.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Crawcrook and Ryton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Crawcrook and Ryton valuers.
Trailing lengthy discussions with the freeholder of her two bedroom flat in Crawcrook and Ryton, Isabel started the lease extension process just as her lease was approaching the critical 80-year deadline. The transaction was finalised in March 2014. The freeholder’s charges were negotiated to slightly above 650 GBP.
In 2010 we were approached by Mr and Mrs. T Wright who, having bought a ground floor flat in Crawcrook and Ryton in June 2002. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparable homes in Crawcrook and Ryton with 100 year plus lease were valued about £237,600. The average amount of ground rent was £45 invoiced monthly. The lease ran out in 2093. Taking into account 67 years remaining we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including fees.
In 2011 we were contacted by Dr Ellen Thompson who, having owned a first floor flat in Crawcrook and Ryton in February 2010. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparative residencies in Crawcrook and Ryton with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease elapsed in 2103. Given that there were 77 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.