On the balance of probabilities where you own a flat in Lydney you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Using our service gives you enhanced control over the value of your Lydney leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the landlord of her basement flat in Lydney, Chantelle commenced the lease extension process as the eighty year threshold was rapidly coming. The transaction was concluded in May 2014. The freeholder’s fees were restricted to a tad over 550 GBP.
In 2011 we were called by Ms Emma Thompson who, having owned a purpose-built flat in Lydney in August 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Lydney with a long lease were worth £189,000. The average amount of ground rent was £55 collected yearly. The lease termination date was in 2079. Having 53 years remaining we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.
In 2011 we were approached by Mr and Mrs. C Hall who, having was assigned a lease of a studio flat in Lydney in April 2002. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Lydney with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease elapsed in 2099. Given that there were 73 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.