It’s a harsh truth that a Bishops Lydeard residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Bishops Lydeard property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Bishops Lydeard will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Bishops Lydeard,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bishops Lydeard valuers.
Nathan was the the leasehold proprietor of a studio flat in Bishops Lydeard being marketed with a lease of just over fifty eight years remaining. Nathan on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
In 2013 we were e-mailed by Dr Sebastian Kelly who, having was assigned a lease of a basement flat in Bishops Lydeard in February 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Bishops Lydeard with a long lease were in the region of £227,800. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out in 2091. Considering the 65 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
In 2011 we were called by Dr Finn Morel who, having acquired a studio apartment in Bishops Lydeard in July 2001. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparable premises in Bishops Lydeard with a long lease were in the region of £275,000. The average amount of ground rent was £55 collected monthly. The lease ran out on 11 January 2102. Considering the 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.