Ryhope leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your 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 see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Ryhope with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | 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. |
The conveyancing solicitors that we work with handle Ryhope lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Ben owned a high value flat in Ryhope on the market with a lease of a little over 72 years outstanding. Ben informally spoke with his landlord a well known London-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 new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2012 we were e-mailed by Dr Sebastian André who, having moved into a ground floor apartment in Ryhope in January 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Identical premises in Ryhope with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 billed yearly. The lease concluded on 22 February 2106. Taking into account 80 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.
Last year we were e-mailed by Mrs Hollie Garcia , who owned a first floor flat in Ryhope in June 2002. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar residencies in Ryhope with an extended lease were valued about £200,800. The average amount of ground rent was £65 collected annually. The lease lapsed in 2086. Considering the 60 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 not including costs.