Unfortunately that a Ryhall residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Ryhall property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term drops below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Ryhall will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Ryhall with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Retaining our service will provide you better control over the value of your Ryhall leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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.
Ben owned a high value apartment in Ryhall being sold with a lease of a little over 72 years remaining. Ben on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ben to invoke his statutory right. Ben procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last Spring we were called by Dr E Ramírez , who took over the lease of a studio apartment in Ryhall in January 2002. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Ryhall with an extended lease were valued around £285,000. The mid-range amount of ground rent was £45 collected annually. The lease terminated on 2 September 2098. Taking into account 72 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
Last Winter we were approach by Mr and Mrs. L Turner , who owned a basement flat in Ryhall in May 2004. The question was if we could approximate the price would likely be to extend the lease by an additional years. Identical premises in Ryhall with 100 year plus lease were worth £233,200. The average ground rent payable was £60 billed per annum. The lease lapsed in 2087. Considering the 61 years left we estimated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus professional charges.