As the length of the unexpired term of a Almondsbury domestic lease decreases so does its value and therefore the value of your property. If the lease has, in excess of one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. The majority of flat owners in Almondsbury will meet the qualifying criteria; that being said a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with procure Almondsbury 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 conveyancing solicitor we work with provide it.
Off the back of unsuccessful discussions with the landlord of her ground floor apartment in Almondsbury, Stephanie initiated the lease extension process as the eighty year deadline was quickly coming. The transaction completed in April 2005. The freeholder’s costs were restricted to approximately 450 pounds.
Mrs J Baker acquired a one bedroom flat in Almondsbury in June 1997. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical homes in Almondsbury with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease ended on 22 May 2096. Given that there were 70 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2012 we were phoned by Dr L Martin who, having was assigned a lease of a studio apartment in Almondsbury in February 2012. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable premises in Almondsbury with a long lease were worth £246,800. The average amount of ground rent was £60 collected monthly. The lease ran out on 14 March 2076. Given that there were 50 years unexpired we calculated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of professional charges.