With a residential leasehold property in Dursley, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years left. Residents in Dursley with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has below eighty years outstanding, under the relevant Act the landlord can calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
Lender | Requirement |
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Chelsea Building Society | 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. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Dursley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the landlord of her ground floor flat in Dursley, Louise commenced the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction was concluded in October 2008. The freeholder’s charges were restricted to below 500 GBP.
Mr and Mrs. K Turner bought a basement flat in Dursley in August 2006. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar properties in Dursley with an extended lease were in the region of £208,200. The average ground rent payable was £65 billed every twelve months. The lease concluded in 2086. Taking into account 61 years unexpired we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of legals.
Mr and Mrs. F Nelson was assigned a lease of a garden flat in Dursley in November 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar premises in Dursley with an extended lease were in the region of £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease terminated on 15 October 2097. Given that there were 72 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.