Stop! Your Lease Extension in Ryton Could Be FREE

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Many leaseholders in Ryton are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Ryton has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should commence your Ryton lease extension

Why you should start your Ryton lease extension today:

Increase your lease and increase your Ryton property value

The re-sale value of a leasehold property in Ryton depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that formalities can be concluded well before the eighty year threshold. Leasehold Reform legislation entitles Ryton qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

Ryton property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not grant a mortgage with a short lease

Many mortgage lenders require a lengthy amount of time remaining on a leasehold property before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should be conscious that it is reasonable to assume that someone wishing to acquire your property in the future might well do, so if they can't obtain a mortgage, then the market price of the property could be adversely impacted. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are prepared to accept

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

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;
Leeds Building Society 85 years remaining from the start of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.

Get in touch with one of our Ryton lease extension solicitors or enfranchisement solicitors

Lease extensions in Ryton can be a difficult process. We recommend you secure guidance from a conveyancer 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.

Ryton Lease Extension Case Studies:

Aiden, Ryton, Tyne And Wear

Half a year ago Aiden, started to get close to the 80-year threshold with the lease on his basement flat in Ryton. In buying his property 18 years ago, the length of the lease was of no interest. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Aiden was able to extend his lease just under the wire in August. Aiden and the landlord in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the sum would have gone up by at least £1,000.

Ryton case:

Ms K Turner acquired a first floor flat in Ryton in May 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Ryton with a long lease were worth £210,600. The average ground rent payable was £45 invoiced quarterly. The lease terminated in 2088. Taking into account 62 years remaining we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.

Ryton case:

In 2014 we were called by Mr W Watson who, having acquired a garden apartment in Ryton in April 1995. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Identical flats in Ryton with an extended lease were valued around £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease end date was on 21 March 2099. Considering the 73 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.