As the the remaining lease term of a Lydney residential lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Lydney will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Lydney with more than one hundred years outstanding 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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.
Half a year ago Eli, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Lydney. Having bought his property twenty years previously, the length of the lease was of no importance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Eli extended the lease just under the wire last January. Eli and the freeholder via the managing agents ultimately settled on an amount of £5,000 . If the lease had slid to less than 80 years, the figure would have become more costly by at least £950.
Dr Aarav Hernández bought a first floor flat in Lydney in March 2003. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative properties in Lydney with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease finished on 16 January 2095. Considering the 70 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Last April we were approach by Mr and Mrs. P Carter , who moved into a one bedroom flat in Lydney in April 2009. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Similar flats in Lydney with a long lease were valued around £223,400. The average ground rent payable was £60 billed yearly. The lease lapsed in 2084. Given that there were 59 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of legals.