Lydney leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. Flat owners in Lydney will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Lydney 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.
Half a year ago William, came precariously close to the eighty-year threshold with the lease on his ground floor apartment in Lydney. In buying his flat two decades ago, the unexpired term was of minimal importance. As luck would have it, he recognised he needed to take action soon on Extending the lease. William was able to extend his lease just ahead of time in July. William and the landlord ultimately settled on an amount of £6,000 . If the lease had fallen to less than 80 years, the premium would have increased by at least £1,125.
Last year we were contacted by Dr Rachael Murphy , who was assigned a lease of a ground floor apartment in Lydney in January 2010. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative residencies in Lydney with an extended lease were in the region of £191,400. The average ground rent payable was £55 collected annually. The lease finished on 15 November 2079. Given that there were 54 years unexpired we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of expenses.
Last Summer we were contacted by Mr James Torres , who completed a garden apartment in Lydney in April 2006. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Similar properties in Lydney with an extended lease were valued around £295,000. The mid-range ground rent payable was £45 collected every twelve months. The lease terminated on 7 July 2099. Given that there were 74 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.