It’s an underpublicised certainty that a Lydney residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Lydney property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Lydney will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Lydney with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Lydney,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lydney valuers.
Two years ago Reuben, started to get near to the eighty-year mark with the lease on his leasehold apartment in Lydney. In buying his flat 18 years ago, the length of the lease was of no bearing. by good luck, he realised he needed to take steps soon on Extending the lease. Reuben extended the lease just ahead of time last March. Reuben and the landlord subsequently agreed on an amount of £5,500 . If the lease had dipped below 80 years, the figure would have become more exhorbitant by at least £1,000.
In 2009 we were called by Mr and Mrs. M James who, having owned a garden flat in Lydney in May 2001. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparable properties in Lydney with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 billed quarterly. The lease ended on 2 July 2098. Having 74 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
Mr Theo Howard acquired a newly refurbished flat in Lydney in July 2012. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Lydney with a long lease were worth £243,000. The mid-range amount of ground rent was £65 collected monthly. The lease lapsed in 2087. Given that there were 63 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.