There is no doubt about it a leasehold property in Lydney is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Lydney will qualify for this right; nevertheless a conveyancer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Lydney,the lease extension solicitors that we work with will always be prepared 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.
Half a year ago Callum, started to get close to the 80-year threshold with the lease on his basement apartment in Lydney. In buying his property two decades ago, the unexpired term was of minimal bearing. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Callum arranged for a lease extension just under the wire last May. Callum and the landlord in the end settled on an amount of £6,000 . If the lease had slipped below 80 years, the premium would have gone up by a minimum £850.
In 2009 we were contacted by Ms Courtney Allen who, having purchased a purpose-built flat in Lydney in February 2008. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Similar flats in Lydney with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed quarterly. The lease end date was on 14 August 2098. Considering the 72 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Dr Toby Bonnet purchased a garden apartment in Lydney in November 2004. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Comparable residencies in Lydney with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 billed every twelve months. The lease elapsed in 2087. Having 61 years unexpired we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.