Unfortunately that a Ryhall residential lease is a wasting asset. The lease value reduces 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 Ryhall property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips under eighty years, you will end up paying 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 Most flat owners in Ryhall will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Engaging our service will provide you enhanced control over the value of your Ryhall leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the freeholder of her leasehold apartment in Ryhall, Georgia commenced the lease extension process as the 80 year deadline was fast approaching. The legal work was finalised in June 2013. The landlord’s costs were kept to an absolute minimum.
Last Winter we were e-mailed by Mrs Yasmin Alexander , who acquired a newly refurbished apartment in Ryhall in September 2012. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Ryhall with a long lease were valued around £174,200. The average ground rent payable was £55 collected annually. The lease expired in 2076. Having 51 years left we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus expenses.
Dr T Jones purchased a studio flat in Ryhall in November 2007. The question was if we could approximate the price could be to prolong the lease by ninety years. Identical premises in Ryhall with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 billed annually. The lease concluded in 2096. Having 71 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.