Lydney leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Lydney enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Lydney you really ought to check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Lydney leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Lydney leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Samuel, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Lydney. In buying his property two decades ago, the length of the lease was of minimal relevance. As luck would have it, he became aware that he would imminently be paying an inflated amount for Extending the lease. Samuel extended the lease just under the wire in January. Samuel and the landlord eventually settled on an amount of £6,000 . If he not met the deadline, the premium would have become more costly by at least £900.
Mr and Mrs. S Howard acquired a ground floor flat in Lydney in November 2007. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparable homes in Lydney with an extended lease were in the region of £206,200. The average ground rent payable was £55 collected monthly. The lease elapsed on 2 October 2081. Considering the 56 years left we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus professional charges.
In 2010 we were phoned by Mr and Mrs. E Ali who, having bought a purpose-built apartment in Lydney in October 2001. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative flats in Lydney with a long lease were in the region of £300,000. The average ground rent payable was £50 collected monthly. The lease came to a finish in 2101. Taking into account 76 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.