As the length of the unexpired term of a Dursley residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 125 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Dursley will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Dursley with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Dursley 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 lawyer we work with provide it.
Trailing protracted discussions with the landlord of her studio apartment in Dursley, Hannah initiated the lease extension process as the eighty year threshold was fast advancing. The legal work completed in June 2011. The landlord’s fees were kept to an absolute minimum.
In 2013 we were contacted by Mr and Mrs. A Flores who, having owned a one bedroom apartment in Dursley in November 1996. 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 ninety years. Similar residencies in Dursley with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 billed quarterly. The lease lapsed in 2105. Considering the 80 years unexpired we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.
Dr Kirsty White acquired a ground floor flat in Dursley in October 2004. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar properties in Dursley with a long lease were valued about £200,800. The mid-range ground rent payable was £65 billed per annum. The lease concluded in 2085. Having 60 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus costs.