Unfortunately that a Ryhope residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Ryhope property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops below eighty 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. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Ryhope will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Ryhope,the lease extension lawyers 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.
Omar was the the leasehold owner of a high value flat in Ryhope on the market with a lease of a few days over 61 years unexpired. Omar on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Omar to exercise his statutory right. Omar procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Autumn we were called by Mr and Mrs. T Moreau , who completed a recently refurbished apartment in Ryhope in October 1998. The question was if we could approximate the premium would be for a ninety year extension to my lease. Similar homes in Ryhope with a long lease were valued around £245,000. The average ground rent payable was £50 invoiced yearly. The lease termination date was on 1 November 2094. Considering the 68 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Last month we were e-mailed by Dr I Thomas , who completed a basement apartment in Ryhope in June 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Ryhope with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease expired in 2105. Given that there were 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.