Ryton leases on residential deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Ryton will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some cases you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Ryton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ryton valuers.
Following protracted discussions with the landlord of her first floor flat in Ryton, Victoria initiated the lease extension process just as the lease was coming close to the all-important 80-year deadline. The lease extension completed in April 2007. The landlord’s costs were kept to an absolute minimum.
Mr F Lefèvre owned a recently refurbished apartment in Ryton in February 2004. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Similar flats in Ryton with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 collected annually. The lease ran out in 2089. Having 64 years unexpired we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus costs.
In 2014 we were approached by Mrs G King who, having moved into a one bedroom apartment in Ryton in January 2008. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Ryton with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £55 billed monthly. The lease concluded on 28 June 2100. Having 75 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.