There is no doubt about it a leasehold flat or house in Lydiate and Melling is a wasting asset as a result of the diminishing lease term. If the lease has, over 99 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Lydiate and Melling will meet the qualifying criteria; that being said a lawyer will be able to advise if you are eligible to extend your lease. In limited 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 generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Lydiate and Melling leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her one bedroom flat in Lydiate and Melling, Alice started the lease extension process as the eighty year threshold was swiftly coming. The lease extension completed in October 2006. The freeholder’s costs were negotiated to about 500 GBP.
In 2014 we were approached by Dr L James who, having acquired a garden apartment in Lydiate and Melling in September 2003. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable flats in Lydiate and Melling with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 collected monthly. The lease lapsed 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 legals.
In 2013 we were contacted by Dr Aiden Collins who, having completed a purpose-built apartment in Lydiate and Melling in August 2010. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Comparable premises in Lydiate and Melling with an extended lease were in the region of £249,200. The average amount of ground rent was £60 invoiced yearly. The lease end date was on 5 April 2077. Taking into account 51 years left we estimated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of professional charges.