Bishops Lydeard leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Bishops Lydeard will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Bishops Lydeard with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Bishops Lydeard leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Alex, started to get close to the eighty-year mark with the lease on his leasehold flat in Bishops Lydeard. In buying his flat two decades ago, the unexpired term was of no interest. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Alex arranged for a lease extension just in the nick of time last June. Alex and the landlord who owned the flat above eventually settled on sum of £5,000 . If he failed to meet the deadline, the price would have increased by a minimum £900.
Ms Louise Bonnet owned a ground floor flat in Bishops Lydeard in October 2011. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar homes in Bishops Lydeard with an extended lease were worth £280,000. The mid-range ground rent payable was £55 collected quarterly. The lease terminated in 2102. Taking into account 77 years outstanding we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.
Mrs Katie Nguyen purchased a ground floor flat in Bishops Lydeard in January 1999. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable properties in Bishops Lydeard with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 billed annually. The lease lapsed in 2082. Having 57 years outstanding we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.