It’s a harsh truth that a Lechlade residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Lechlade property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Lechlade will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 gives you increased control over the value of your Lechlade leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her one bedroom apartment in Lechlade, Georgia started the lease extension process as the eighty year mark was swiftly coming. The transaction was concluded in September 2011. The freeholder’s charges were restricted to a tad over 500 GBP.
Last Summer we were phoned by Mr V Hernández , who acquired a basement flat in Lechlade in October 2010. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Lechlade with an extended lease were valued around £255,000. The average ground rent payable was £50 collected quarterly. The lease lapsed in 2095. Considering the 70 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £10,500 and £12,000 exclusive of professional charges.
Last July we were approach by Dr Hugo Vincent , who was assigned a lease of a one bedroom flat in Lechlade in August 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Comparable residencies in Lechlade with an extended lease were valued about £246,800. The average ground rent payable was £60 billed quarterly. The lease terminated on 2 April 2075. Having 50 years outstanding we approximated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including professional charges.