The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Lydney have the right to extend the lease for a further ninety years under statute. Please think carefully before delaying your Lydney lease extension. Shelving the costs today simply increases the price you will eventually have to pay to extend the lease.
Leasehold properties in Lydney with in excess of one hundred years unexpired on the lease are often 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 purchasing the freehold unless savings on ground rent and estate 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 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 lawyer we work with provide it.
18 months ago Dylan, came perilously near to the eighty-year threshold with the lease on his two bedroom apartment in Lydney. In buying his property 18 years ago, the lease term was of minimal bearing. Thankfully, he noticed he needed to take action soon on Extending the lease. Dylan was able to extend his lease just in the nick of time last April. Dylan and the landlord who owned the flat above in the end settled on an amount of £5,500 . If he not met the deadline, the premium would have gone up by at least £925.
In 2011 we were e-mailed by Mr and Mrs. T Cook who, having acquired a ground floor apartment in Lydney in February 2008. The question was if we could estimate the premium could be to extend the lease by ninety years. Comparable residencies in Lydney with a long lease were in the region of £205,000. The average ground rent payable was £50 invoiced per annum. The lease ran out in 2104. Taking into account 79 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.
In 2011 we were phoned by Mr James Sharif who, having was assigned a lease of a one bedroom apartment in Lydney in November 2008. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Lydney with 100 year plus lease were worth £275,000. The average ground rent payable was £65 collected annually. The lease terminated in 2093. Considering the 68 years left we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.