Ryhope residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold premises in Ryhope with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Ryhope,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ryhope valuers.
Reuben owned a high value flat in Ryhope on the market with a lease of a few days over sixty years left. Reuben on an informal basis contacted his landlord being a well known Manchester-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 £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.
Last June we were phoned by Mr Reuben Watson , who purchased a basement flat in Ryhope in May 2008. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative flats in Ryhope with 100 year plus lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease ended on 18 January 2079. Considering the 54 years unexpired we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of fees.
Ms Y Moreau completed a basement flat in Ryhope in October 1996. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Ryhope with a long lease were valued about £227,800. The average ground rent payable was £45 collected per annum. The lease came to a finish in 2090. Taking into account 65 years unexpired we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.