Bishops Lydeard leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Bishops Lydeard will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold properties in Bishops Lydeard with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | 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. |
| 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 |
Retaining our service gives you increased control over the value of your Bishops Lydeard leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her studio apartment in Bishops Lydeard, Mollie started the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was finalised in October 2007. The freeholder’s costs were restricted to a tad over 450 GBP.
Last Autumn we were phoned by Mr and Mrs. Y Patel , who moved into a garden apartment in Bishops Lydeard in February 2004. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar homes in Bishops Lydeard with an extended lease were worth £218,000. The average amount of ground rent was £45 invoiced monthly. The lease ended on 12 October 2089. Considering the 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus costs.
Mr Lewis Morel completed a studio flat in Bishops Lydeard in July 2006. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Bishops Lydeard with a long lease were in the region of £265,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease terminated in 2100. Given that there were 74 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.