Lyneham leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Lyneham will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 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 |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Lyneham can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Lyneham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon was the the leasehold proprietor of a high value flat in Lyneham being marketed with a lease of a little over fifty eight years left. Leon on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leon to exercise his statutory right. Leon obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
In 2014 we were phoned by Ms Jodie Lee who, having completed a basement flat in Lyneham in April 1995. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Lyneham with 100 year plus lease were valued about £184,000. The average ground rent payable was £55 billed monthly. The lease came to a finish on 12 September 2079. Having 53 years outstanding we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.
In 2013 we were approached by Mrs Leah Simon who, having was assigned a lease of a basement apartment in Lyneham in March 2008. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar flats in Lyneham with 100 year plus lease were valued around £290,000. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish on 1 August 2099. Given that there were 73 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.