Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Lyddington. Inevitably, the term of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the property needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Lyddington have the legal entitlement to extend the lease for a further 90 years under statute. Do give careful attention before putting off your Lyddington lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Lyddington 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 conveyancer we work with provide it.
Off the back of lengthy correspondence with the landlord of her first floor apartment in Lyddington, Isabelle initiated the lease extension process as the 80 year deadline was rapidly advancing. The legal work was finalised in July 2012. The landlord’s charges were kept to an absolute minimum.
Last year we were e-mailed by Dr Evan White , who was assigned a lease of a garden apartment in Lyddington in July 2012. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable premises in Lyddington with a long lease were in the region of £250,000. The average amount of ground rent was £50 invoiced monthly. The lease terminated on 21 March 2094. Taking into account 69 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
Ms Georgina Morel owned a studio apartment in Lyddington in August 2001. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparable residencies in Lyddington with 100 year plus lease were valued around £290,000. The average ground rent payable was £60 collected annually. The lease finished on 7 January 2105. Considering the 80 years left we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.