With a domestic leasehold premises in Lydney, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Lydney with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under eighty years remaining, under the current statute the landlord is entitled to calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Lydney with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Lydney 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 conveyancer we work with provide it.
Jacob was the the leasehold owner of a studio apartment in Lydney being marketed with a lease of a few days over sixty years unexpired. Jacob informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2011 we were phoned by Mr and Mrs. O Baker who, having was assigned a lease of a basement apartment in Lydney in July 1996. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Lydney with a long lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease elapsed on 10 May 2104. Taking into account 78 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
Mr Zachary Thompson purchased a garden apartment in Lydney in May 2005. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Similar premises in Lydney with a long lease were valued about £267,600. The mid-range ground rent payable was £65 collected yearly. The lease came to a finish on 24 April 2093. Considering the 67 years remaining we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 not including fees.