Ryhope leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Ryhope enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Ryhope you should check if your lease has between 70 and ninety years remaining. There are good reasons why a Ryhope flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a freeholder in Ryhope,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ryhope valuers.
Following protracted negotiations with the freeholder of her leasehold flat in Ryhope, Anna started the lease extension process as the eighty year threshold was quickly coming. The transaction was finalised in May 2015. The landlord’s charges were kept to an absolute minimum.
Last month we were e-mailed by Mr and Mrs. Y Howard , who took over the lease of a one bedroom apartment in Ryhope in June 2001. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical residencies in Ryhope with an extended lease were in the region of £208,200. The average ground rent payable was £65 invoiced annually. The lease elapsed on 11 May 2087. Considering the 61 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus professional charges.
Last Autumn we were e-mailed by Dr Mason Harris , who acquired a garden apartment in Ryhope in June 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar homes in Ryhope with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ran out on 3 September 2098. Having 72 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.