Ryton leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Ryton will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Ryton with in excess of one hundred years left 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Skipton Building Society |
The lawyers that we work with handle Ryton 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 conveyancing solicitor we work with provide it.
Ethan was the the leasehold owner of a studio apartment in Ryton on the market with a lease of a little over 61 years outstanding. Ethan informally approached his landlord a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Mr Archie Martínez purchased a ground floor flat in Ryton in September 2010. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Ryton with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 collected monthly. The lease concluded in 2083. Considering the 57 years unexpired we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.
Last June we were contacted by Dr O Allen , who completed a studio flat in Ryton in January 2001. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical homes in Ryton with 100 year plus lease were worth £245,000. The average amount of ground rent was £50 billed annually. The lease expired on 3 September 2094. Given that there were 68 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.