As the length of the unexpired term of a Ludgershall domestic lease decreases so does its value and therefore the value of your property. Where the lease has, more than 125 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Ludgershall will qualify for this right; that being said a conveyancer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Ludgershall with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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 lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
Kyle was the the leasehold proprietor of a conversion apartment in Ludgershall on the market with a lease of a little over 61 years remaining. Kyle on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Kyle to exercise his statutory right. Kyle procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Last Winter we were approach by Mr and Mrs. N Ricardo , who bought a purpose-built flat in Ludgershall in August 2012. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable homes in Ludgershall with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed on 18 October 2103. Given that there were 78 years left we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
Last Christmas we were called by Dr I Davies , who completed a garden flat in Ludgershall in July 2006. We are asked if we could approximate the price could be to extend the lease by an additional years. Identical properties in Ludgershall with an extended lease were in the region of £191,000. The mid-range ground rent payable was £65 invoiced per annum. The lease elapsed on 14 November 2083. Having 58 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of professional charges.