Why you should start your Ryhope lease extension

Main reasons to commence your Ryhope lease extension today:

A Ryhope lease depreciates with the years remaining on the lease.

Ryhope leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Ryhope residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ryhope you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Ryhope with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Mortgage lenders will not grant a mortgage with a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Ryhope lease extensions?

Irrespective of whether you are a tenant or a landlord in Ryhope,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ryhope valuers.

Ryhope Lease Extension Case Summaries:

Theo, Ryhope, Tyne And Wear,

Theo was the the leasehold owner of a conversion apartment in Ryhope being marketed with a lease of a few days over 72 years outstanding. Theo on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Theo to invoke his statutory right. Theo procured expert legal guidance and secured satisfactory deal informally and readily saleable.

Ryhope case:

In 2011 we were called by Dr N Allen who, having was assigned a lease of a first floor apartment in Ryhope in September 1999. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable homes in Ryhope with a long lease were in the region of £176,200. The average ground rent payable was £65 invoiced annually. The lease finished on 26 August 2082. Considering the 56 years unexpired we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 plus costs.

Ryhope case:

Last Winter we were contacted by Mr and Mrs. D François , who bought a basement apartment in Ryhope in May 2006. The question was if we could estimate the price could be to prolong the lease by 90 years. Identical properties in Ryhope with 100 year plus lease were valued about £242,600. The average amount of ground rent was £45 billed per annum. The lease expiry date was on 19 August 2093. Having 67 years outstanding we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus costs.