Why you should start your Lyneham lease extension

Why you should commence your Lyneham lease extension today:

Increase your lease and increase your Lyneham property value

It’s a harsh truth that a Lyneham residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Lyneham property prices.Where your lease has approximately ninety years left, you need to start considering 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 dips below eighty years - otherwise a higher premium will be due. The majority of flat owners in Lyneham will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.

Lyneham property with a lease extension has roughly the same value as a freehold

Leasehold premises in Lyneham with in excess of one hundred years left 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 premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not grant a mortgage on a short lease

The trend since 2008 has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Lyneham lease extensions?

Regardless of whether you are a tenant or a landlord in Lyneham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lyneham valuers.

Lyneham Lease Extension Case Studies:

Naomi, Lyneham, Wiltshire,

After unsuccessful discussions with the freeholder of her one bedroom apartment in Lyneham, Naomi commenced the lease extension process just as her lease was coming close to the all-important 80-year threshold. The transaction was concluded in January 2011. The freeholder’s fees were negotiated to a tad over 650 pounds.

Lyneham case:

Last Spring we were phoned by Dr L Kelly , who completed a ground floor apartment in Lyneham in July 2000. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative flats in Lyneham with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out in 2103. Taking into account 77 years left we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.

Lyneham case:

In 2013 we were approached by Dr Lucas André who, having was assigned a lease of a first floor flat in Lyneham in March 2003. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative properties in Lyneham with a long lease were worth £260,200. The average ground rent payable was £65 collected yearly. The lease expired on 10 February 2092. Considering the 66 years unexpired we estimated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of fees.