With a long leasehold premises in Ryton, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than eighty years left. Residents in Ryton with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. When a lease has below eighty years outstanding, under the relevant legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Ryton with more than one hundred years outstanding 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 Ryton can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Ryton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Muhammad, started to get near to the eighty-year threshold with the lease on his basement flat in Ryton. Having bought his property 18 years ago, the lease term was of no importance. by good luck, he noticed he would soon be paying an escalated premium for a lease extension. Muhammad extended the lease just ahead of time last April. Muhammad and the landlord in the end agreed on a premium of £5,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £1,125.
In 2013 we were approached by Dr F Fournier who, having bought a first floor flat in Ryton in October 2003. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable properties in Ryton with a long lease were valued about £246,800. The average amount of ground rent was £60 collected quarterly. The lease elapsed in 2076. Taking into account 50 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 not including legals.
Mr Harvey Lewis owned a one bedroom flat in Ryton in March 1997. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar premises in Ryton with an extended lease were in the region of £208,200. The average amount of ground rent was £65 collected per annum. The lease concluded on 11 October 2087. Taking into account 61 years left we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus expenses.