Unfortunately that a Lydney residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Lydney property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Lydney will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold residencies in Lydney with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Lydney can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
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 in-depth market knowledge procuring Lydney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harvey was the the leasehold proprietor of a 2 bedroom flat in Lydney on the market with a lease of a little over sixty years outstanding. Harvey on an informal basis contacted his landlord being a well known Bristol-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 subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last Summer we were phoned by Mr U Cooper , who took over the lease of a basement flat in Lydney in September 1998. The question was if we could estimate the premium would be to extend the lease by an additional years. Similar premises in Lydney with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 billed annually. The lease concluded in 2096. Given that there were 71 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
Last month we were e-mailed by Dr Aarav Leroy , who was assigned a lease of a studio flat in Lydney in March 1998. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable premises in Lydney with an extended lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish in 2085. Considering the 60 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of costs.