The only way is down when it comes to Lyneham lease terms. Lyneham properties that have a residual term lower than 80 years will drop in value even faster, and the cost of extending your lease will rise.
Leasehold residencies in Lyneham with in excess of 100 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Lyneham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Two years ago James, started to get near to the eighty-year threshold with the lease on his garden flat in Lyneham. Having purchased his property twenty years ago, the lease term was of little interest. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. James extended the lease at the eleventh hour in August. James and the freeholder via the managing agents eventually settled on a premium of £5,000 . If the lease had descended lower than 80 years, the price would have gone up by at least £975.
Dr V Watson took over the lease of a first floor apartment in Lyneham in May 2009. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparative properties in Lyneham with an extended lease were worth £174,200. The average amount of ground rent was £55 collected yearly. The lease concluded on 17 September 2076. Taking into account 51 years left we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.
Last July we were e-mailed by Mrs Millie Ali , who owned a purpose-built apartment in Lyneham in April 2012. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable flats in Lyneham with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 collected annually. The lease termination date was in 2096. Having 71 years outstanding we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.