With a long leasehold premises in Dursley, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Leasehold owners in Dursley with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has below eighty years left, under the current legislation the freeholder can calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
Engaging our service will provide you better control over the value of your Dursley leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold owner of a conversion flat in Dursley being marketed with a lease of just over 72 years left. Ibrahim informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last Summer we were approach by Ms Aimee Reed , who purchased a first floor flat in Dursley in August 2001. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar flats in Dursley with 100 year plus lease were in the region of £208,200. The mid-range ground rent payable was £65 collected annually. The lease came to a finish in 2087. Taking into account 61 years left we approximated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including legals.
Mrs Courtney Lewis purchased a one bedroom apartment in Dursley in May 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Identical properties in Dursley with a long lease were in the region of £260,000. The average amount of ground rent was £50 collected annually. The lease elapsed on 13 July 2098. Given that there were 72 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.