Ryhope residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
Leasehold properties in Ryhope with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Ryhope can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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.
Jack owned a studio flat in Ryhope on the market with a lease of fraction over 59 years left. Jack on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2011 we were contacted by Mrs V James who, having bought a one bedroom flat in Ryhope in October 2002. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar premises in Ryhope with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out on 28 November 2103. Considering the 78 years outstanding we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Last August we were contacted by Mr and Mrs. T Morgan , who took over the lease of a recently refurbished apartment in Ryhope in March 2010. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Identical homes in Ryhope with 100 year plus lease were worth £191,000. The mid-range ground rent payable was £65 collected yearly. The lease concluded in 2083. Considering the 58 years unexpired we approximated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 not including legals.