Unfortunately that a Chipping Sodbury residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Chipping Sodbury property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Chipping Sodbury will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
The conveyancing solicitors that we work with undertake Chipping Sodbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After lengthy discussions with the landlord of her basement apartment in Chipping Sodbury, Paige commenced the lease extension process just as the lease was approaching the crucial eighty-year threshold. The legal work was finalised in August 2005. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were approach by Mr and Mrs. C Parker , who was assigned a lease of a basement flat in Chipping Sodbury in May 2003. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative flats in Chipping Sodbury with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease ran out in 2101. Given that there were 75 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Mr and Mrs. K Simon completed a basement apartment in Chipping Sodbury in January 2010. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Identical properties in Chipping Sodbury with 100 year plus lease were valued around £173,800. The average amount of ground rent was £65 billed quarterly. The lease lapsed in 2081. Given that there were 55 years left we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.