When it comes to long leasehold premises in Lydiate, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Residents in Lydiate with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has fewer than 80 years remaining, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Lydiate can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Lydiate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Jason, started to get near to the 80-year mark with the lease on his studio apartment in Lydiate. Having purchased his flat 19 years ago, the length of the lease was of no significance. Thankfully, he recognised he would imminently be paying an inflated amount for a lease extension. Jason was able to extend his lease just in the nick of time last September. Jason and the freeholder eventually agreed on a premium of £5,000 . If the lease had fallen lower than eighty years, the premium would have become more costly by a minimum £1,050.
Dr Ellen Peterson owned a basement apartment in Lydiate in July 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Lydiate with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 billed quarterly. The lease came to a finish in 2092. Given that there were 67 years remaining we approximated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus costs.
Dr K Brown completed a newly refurbished apartment in Lydiate in June 2000. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative residencies in Lydiate with a long lease were in the region of £201,200. The average amount of ground rent was £55 invoiced every twelve months. The lease expired on 26 March 2081. Given that there were 56 years remaining we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus fees.