Bishops Lydeard leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease drops lower than eighty years - otherwise a higher premium will be payable. Flat owners in Bishops Lydeard will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not qualify. There are prescribed timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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 experts that we work with will always be willing 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.
Trailing protracted negotiations with the freeholder of her first floor flat in Bishops Lydeard, Erin commenced the lease extension process just as the lease was approaching the crucial 80-year mark. The legal work completed in May 2006. The landlord’s costs were kept to an absolute minimum.
Dr Henry Ali acquired a purpose-built apartment in Bishops Lydeard in November 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Bishops Lydeard with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease lapsed in 2095. Taking into account 70 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 plus professional charges.
Last Winter we were phoned by Mr and Mrs. M Campbell , who moved into a ground floor flat in Bishops Lydeard in October 1995. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative flats in Bishops Lydeard with an extended lease were valued around £246,800. The mid-range ground rent payable was £60 invoiced per annum. The lease elapsed on 11 August 2075. Having 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 not including professional charges.