The closer a domestic lease in Lyddington nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 100 years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner than later. Many flat owners in Lyddington will meet the qualifying criteria; nevertheless a conveyancer will be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Lyddington can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Lyddington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Rory, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Lyddington. Having bought his home two decades ago, the unexpired term was of little concern. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Rory extended the lease just under the wire last March. Rory and the freeholder eventually settled on the final figure of £6,000 . If he had missed the deadline, the figure would have gone up by at least £950.
Mr and Mrs. Y Martinez bought a ground floor apartment in Lyddington in February 2004. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable residencies in Lyddington with 100 year plus lease were valued about £255,000. The mid-range ground rent payable was £50 collected annually. The lease terminated in 2097. Having 71 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
In 2011 we were phoned by Ms Sophia Ricardo who, having purchased a one bedroom flat in Lyddington in February 2011. We are asked if we could estimate the premium would be to extend the lease by 90 years. Similar properties in Lyddington with a long lease were worth £254,200. The average amount of ground rent was £60 invoiced per annum. The lease elapsed in 2077. Taking into account 51 years remaining we approximated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of fees.