Dursley leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Dursley will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Dursley with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you increased control over the value of your Dursley leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy correspondence with the landlord of her studio flat in Dursley, Imogen initiated the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The legal work was concluded in November 2008. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Dr V Petit who, having purchased a ground floor apartment in Dursley in April 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Dursley with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 collected quarterly. The lease terminated in 2101. Given that there were 75 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Ms V Michel acquired a studio flat in Dursley in September 2010. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparative premises in Dursley with 100 year plus lease were in the region of £173,800. The mid-range amount of ground rent was £60 billed monthly. The lease concluded in 2081. Considering the 55 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.