It’s a harsh certainty that a Almondsbury residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Almondsbury property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Almondsbury will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Almondsbury with in excess of 100 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Almondsbury 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.
Liam owned a high value apartment in Almondsbury being sold with a lease of fraction over 72 years unexpired. Liam on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be due on a lease extension were Liam to invoke his statutory right. Liam obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Mr Reuben Wood moved into a newly refurbished apartment in Almondsbury in May 2004. The question was if we could estimate the price could be to prolong the lease by 90 years. Similar residencies in Almondsbury with a long lease were in the region of £275,000. The average ground rent payable was £55 invoiced annually. The lease terminated on 5 October 2101. Taking into account 76 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Ms Emma Campbell acquired a ground floor flat in Almondsbury in March 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Almondsbury with an extended lease were valued about £176,200. The mid-range amount of ground rent was £65 billed monthly. The lease expired in 2081. Taking into account 56 years remaining we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of costs.