With a domestic leasehold property in Lydiate, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Leasehold owners in Lydiate with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under eighty years remaining, under the current legislation the freeholder can calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Lydiate with over one hundred 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Lydiate 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.
Evan was the the leasehold proprietor of a conversion apartment in Lydiate being marketed with a lease of fraction over sixty years unexpired. Evan informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Evan to invoke his statutory right. Evan procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
In 2011 we were e-mailed by Mr and Mrs. K Johnson who, having took over the lease of a studio apartment in Lydiate in April 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Lydiate with a long lease were valued about £225,800. The mid-range ground rent payable was £60 billed every twelve months. The lease finished on 18 April 2086. Considering the 60 years unexpired we estimated the compensation to the landlord for the lease extension to be within £25,700 and £29,600 not including fees.
In 2010 we were called by Dr Joshua Howard who, having owned a studio apartment in Lydiate in June 1996. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative premises in Lydiate with a long lease were valued around £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2106. Given that there were 80 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.