With a domestic leasehold premises in Lydiate, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than 80 years remaining. Residents in Lydiate with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once the lease term has under eighty years outstanding, under the relevant Act the landlord can calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
The conveyancing solicitors that we work with procure 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.
Dexter was the the leasehold owner of a high value flat in Lydiate on the market with a lease of fraction over fifty eight years left. Dexter informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord 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 25 years thereafter. No ground rent would be due on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2012 we were called by Ms Eleanor Hernández who, having was assigned a lease of a studio flat in Lydiate in April 2012. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparable flats in Lydiate with a long lease were in the region of £235,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease termination date was in 2087. Considering the 62 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including expenses.
In 2011 we were approached by Dr Y David who, having completed a ground floor apartment in Lydiate in September 2006. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Lydiate with an extended lease were worth £174,200. The average ground rent payable was £55 billed annually. The lease lapsed on 16 March 2076. Considering the 51 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.