The market value of Ryhope leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is less than 80 years
Leasehold properties in Ryhope with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Ryhope can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 dealing with Ryhope 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 Jude, came precariously close to the eighty-year threshold with the lease on his basement apartment in Ryhope. Having purchased his home two decades ago, the length of the lease was of minimal bearing. Luckily, he realised he would imminently be paying way over the odds for Extending the lease. Jude was able to extend his lease just under the wire in April. Jude and the freeholder in the end settled on sum of £6,000 . If the lease had descended lower than eighty years, the premium would have gone up by at least £875.
Ms O André bought a studio apartment in Ryhope in November 2008. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable premises in Ryhope with an extended lease were valued around £235,200. The average amount of ground rent was £45 billed every twelve months. The lease end date was in 2091. Considering the 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
Mr and Mrs. I Green bought a ground floor flat in Ryhope in January 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Ryhope with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 invoiced monthly. The lease came to a finish in 2102. Considering the 77 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.