Unfortunately that a Ludgershall residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Ludgershall property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term slips below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Ludgershall will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Ludgershall with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 Ludgershall 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.
Jasper owned a studio apartment in Ludgershall being sold with a lease of a little over 61 years left. Jasper on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Jasper to invoke his statutory right. Jasper procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. C Walker purchased a studio apartment in Ludgershall in November 2012. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar homes in Ludgershall with a long lease were valued around £208,200. The average ground rent payable was £65 collected yearly. The lease elapsed on 25 May 2087. Having 61 years as a residual term we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of fees.
Mrs Amelia Thomas moved into a one bedroom flat in Ludgershall in February 1996. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable properties in Ludgershall with 100 year plus lease were valued about £260,000. The average ground rent payable was £50 collected every twelve months. The lease ended on 22 September 2098. Taking into account 72 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.