When it comes to domestic leasehold premises in Lydney, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Leasehold owners in Lydney with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When a lease has under 80 years outstanding, under the current legislation the landlord can calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Lydney with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Lydney can be a difficult process. We recommend you procure guidance 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.
Off the back of unsuccessful negotiations with the freeholder of her ground floor flat in Lydney, Paige commenced the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The transaction was finalised in July 2008. The landlord’s charges were negotiated to approximately six hundred GBP.
Last Summer we were called by Dr Eli Harris , who acquired a purpose-built flat in Lydney in October 1999. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Lydney with 100 year plus lease were valued around £295,000. The average amount of ground rent was £45 collected annually. The lease terminated on 21 July 2099. Having 74 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Last Spring we were called by Ms Laura Petit , who acquired a one bedroom apartment in Lydney in November 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical flats in Lydney with 100 year plus lease were worth £243,000. The average ground rent payable was £65 billed quarterly. The lease finished on 9 July 2088. Taking into account 63 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including professional charges.