The closer a residential lease in Dymock nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 125 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Dymock will qualify for this right; however a conveyancer will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| 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. |
The conveyancers that we work with undertake Dymock 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.
Leo was the the leasehold owner of a 2 bedroom apartment in Dymock on the market with a lease of a few days over 61 years remaining. Leo on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Mr V Leroy moved into a one bedroom apartment in Dymock in January 1995. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Dymock with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ended in 2102. Given that there were 76 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Last Autumn we were called by Mr Omar Mercier , who acquired a purpose-built apartment in Dymock in July 2001. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Similar homes in Dymock with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 billed monthly. The lease expired in 2082. Given that there were 56 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of legals.