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 accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Crawcrook and Ryton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Crawcrook and Ryton you really ought to check if your lease has between seventy and 90 years left. There are good reasons why a Crawcrook and Ryton flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
Mason owned a conversion flat in Crawcrook and Ryton on the market with a lease of just over 59 years left. Mason on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Mason to invoke his statutory right. Mason obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
In 2013 we were e-mailed by Ms Lauren Torres who, having owned a purpose-built flat in Crawcrook and Ryton in September 2002. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparable premises in Crawcrook and Ryton with a long lease were worth £183,600. The mid-range amount of ground rent was £65 billed annually. The lease terminated on 23 November 2082. Given that there were 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
Dr Cameron Dupont took over the lease of a newly refurbished apartment in Crawcrook and Ryton in April 2007. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical properties in Crawcrook and Ryton with 100 year plus lease were valued about £245,000. The average ground rent payable was £45 invoiced annually. The lease ran out in 2093. Given that there were 68 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.