Lydney leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Lydney enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Lydney you really ought to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Lydney with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Lydney can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 dealing with Lydney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jonathan was the the leasehold proprietor of a 2 bedroom flat in Lydney on the market with a lease of fraction over 72 years remaining. Jonathan informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Last month we were approach by Ms Sarah Mason , who completed a garden apartment in Lydney in July 2012. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable premises in Lydney with a long lease were worth £290,000. The average amount of ground rent was £45 collected quarterly. The lease terminated on 8 September 2099. Given that there were 73 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
In 2013 we were approached by Mrs Y Ali who, having moved into a purpose-built apartment in Lydney in May 2011. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Lydney with a long lease were valued around £240,600. The mid-range ground rent payable was £60 billed yearly. The lease lapsed on 1 April 2088. Given that there were 62 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.