Unfortunately that a Lytchett Matravers residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Lytchett Matravers property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term slips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Lytchett Matravers will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Lytchett Matravers with in excess of one hundred 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Lytchett Matravers 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 lawyer we work with provide it.
Last year Leo, started to get close to the 80-year threshold with the lease on his ground floor flat in Lytchett Matravers. Having bought his flat two decades ago, the unexpired term was of little concern. Fortunately, he became aware that he would imminently be paying an escalated premium for a lease extension. Leo extended the lease just ahead of time in September. Leo and the freeholder subsequently settled on sum of £6,000 . If he not met the deadline, the sum would have become more exhorbitant by at least £975.
Last Summer we were phoned by Mrs Victoria Garcia , who completed a studio flat in Lytchett Matravers in October 2001. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable flats in Lytchett Matravers with an extended lease were in the region of £193,400. The average amount of ground rent was £65 invoiced annually. The lease terminated on 20 September 2084. Having 59 years unexpired we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus fees.
Mr K Thomas was assigned a lease of a purpose-built apartment in Lytchett Matravers in January 2001. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable premises in Lytchett Matravers with an extended lease were worth £255,000. The average ground rent payable was £50 invoiced quarterly. The lease came to a finish in 2095. Taking into account 70 years outstanding we estimated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 not including fees.