With a residential leasehold premises in Ryhope, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years left. Anyone in Ryhope with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the relevant statute the landlord is entitled to calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Ryhope with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Retaining our service gives you increased control over the value of your Ryhope leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Andrew owned a conversion apartment in Ryhope on the market with a lease of fraction over 61 years outstanding. Andrew informally contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert advice and secured an acceptable deal informally and sell the property.
In 2012 we were approached by Mr Zachary Wilson who, having completed a newly refurbished flat in Ryhope in July 2004. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Ryhope with a long lease were valued around £193,400. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed on 2 June 2085. Considering the 59 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
Last Christmas we were contacted by Mr and Mrs. N Martinez , who moved into a one bedroom flat in Ryhope in August 2005. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparative premises in Ryhope with a long lease were worth £255,000. The average ground rent payable was £50 billed annually. The lease terminated on 11 November 2096. Having 70 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.