With a long leasehold property in Lyneham, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than eighty years remaining. Anyone in Lyneham with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below eighty years left, under the current legislation the landlord can calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Lyneham with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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 |
Retaining our service will provide you better control over the value of your Lyneham leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Jude, started to get near to the eighty-year threshold with the lease on his garden apartment in Lyneham. Having purchased his property two decades ago, the lease term was of little concern. by good luck, he realised he needed to take steps soon on a lease extension. Jude arranged for a lease extension just under the wire last May. Jude and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had dipped lower than eighty years, the price would have become more exhorbitant by at least £875.
Mr and Mrs. A Flores completed a newly refurbished flat in Lyneham in July 2006. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable homes in Lyneham with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 collected quarterly. The lease expiry date was in 2104. Having 79 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Last Christmas we were approach by Dr W Bertrand , who purchased a first floor apartment in Lyneham in June 1996. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative residencies in Lyneham with an extended lease were in the region of £275,000. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed on 18 January 2093. Considering the 68 years remaining we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.