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 your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Crawcrook and Ryton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Crawcrook and Ryton you must see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Crawcrook and Ryton with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Finn owned a high value apartment in Crawcrook and Ryton being sold with a lease of a few days over sixty years remaining. Finn on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Finn to invoke his statutory right. Finn obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Ms B Sánchez owned a studio apartment in Crawcrook and Ryton in August 2000. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Similar premises in Crawcrook and Ryton with an extended lease were worth £200,800. The average amount of ground rent was £65 collected every twelve months. The lease concluded in 2086. Considering the 60 years remaining we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 not including fees.
Dr W Thomas was assigned a lease of a basement flat in Crawcrook and Ryton in March 2006. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Identical properties in Crawcrook and Ryton with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease expiry date was on 14 June 2097. Having 71 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.