There is no doubt about it a leasehold property in Ryde is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner than later. Most flat owners in Ryde will meet the qualifying criteria; that being said a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Ryde can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Ryde lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Andrew, came seriously close to the eighty-year mark with the lease on his one bedroom flat in Ryde. Having bought his flat two decades ago, the unexpired term was of minimal significance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Andrew extended the lease just under the wire in June. Andrew and the freeholder in the end settled on the final figure of £5,000 . If he failed to meet the deadline, the sum would have increased by at least £975.
In 2009 we were phoned by Dr Luca Fournier who, having completed a purpose-built apartment in Ryde in March 2004. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparable premises in Ryde with a long lease were valued about £210,600. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out in 2088. Taking into account 62 years remaining we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including professional charges.
In 2013 we were contacted by Mr Kai Rogers who, having bought a newly refurbished apartment in Ryde in March 2011. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical premises in Ryde with a long lease were worth £265,000. The average ground rent payable was £50 billed monthly. The lease expired on 24 September 2099. Considering the 73 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.