As the length of the unexpired term of a Lechlade domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Lechlade will qualify for this right; that being said a conveyancing solicitor can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|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||Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
The conveyancing solicitors that we work with handle Lechlade 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.
Gabriel was the the leasehold owner of a conversion flat in Lechlade being marketed with a lease of just over 72 years unexpired. Gabriel informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2010 we were phoned by Mr and Mrs. U López who, having bought a one bedroom flat in Lechlade in September 2001. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar flats in Lechlade with an extended lease were valued around £193,400. The mid-range ground rent payable was £65 invoiced yearly. The lease ran out on 20 July 2081. Given that there were 59 years left we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of fees.
In 2009 we were contacted by Dr Sam Evans who, having completed a ground floor flat in Lechlade in April 2011. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Lechlade with a long lease were worth £250,000. The average ground rent payable was £50 invoiced annually. The lease terminated in 2092. Considering the 70 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.