Studio for Sale Ryeland Close
This studio flat in on with a couple of agents or not (different exterior buildings with the same internals). Curious.
From previous posts I have highlighted that I think Ryeland Close is strong for Buy To Let investment.
The Campsie listing shows that there is 76 years left on the lease. This is a little short, so I wanted to discuss that.
The good news is once you have owned the property for two years you have the right under the 1993 Leasehold Reform, Housing and Urban Development Act to extend the lease by 90 years.
The bad? Below 80 years, marriage fees become payable (an extra payment for the lease holder) if you want to renew the lease. Below 75 years you also have to factor in mortgage companies start to get new prickly about lending and the shorter the lease gets the more prickly the mortgage companies are. Beneath 60 years and you are unlikely to be able to sell the flat to someone who needs a mortgage cutting your potential market.
As seems possible, if this was a 99 year lease then calculators suggest, at the current value the cost of lease extension will be £5,000-6,000 plus costs. This is a guide only, please do your own research if you are interested as costs vary. If you want to know more about this field of property law the Leasehold Advisory Service is a good place to start.
Clearly lease length is a key issue with this property. If the property was let at £550pcm, and the purchase price of the property was £104.5K + £7k for the lease extension, with no other work, the gross yield would be 5.9%
Jeremy Wasden of Belvoir Letting Uxbridge