Unfortunately that a Bishops Lydeard residential lease is a wasting 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 loss of value being disguised by increases in the Bishops Lydeard property prices.Where your lease has approximately ninety years left, you should start thinking about 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 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Bishops Lydeard will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | 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. |
Irrespective of whether you are a tenant or a landlord in Bishops Lydeard,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bishops Lydeard valuers.
After unsuccessful correspondence with the freeholder of her ground floor apartment in Bishops Lydeard, Ashleigh commenced the lease extension process as the 80 year threshold was swiftly nearing. The legal work completed in November 2006. The landlord’s fees were negotiated to approximately 700 GBP.
Dr Jack Alexander took over the lease of a ground floor flat in Bishops Lydeard in June 2002. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar premises in Bishops Lydeard with 100 year plus lease were in the region of £191,000. The average ground rent payable was £65 collected per annum. The lease elapsed in 2083. Having 58 years left we estimated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of costs.
Dr Jackson Edwards owned a purpose-built flat in Bishops Lydeard in November 1997. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Bishops Lydeard with 100 year plus lease were valued around £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease ended on 8 November 2094. Given that there were 69 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.