It’s a harsh certainty that a Lyneham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Lyneham property market.Once your lease gets to 85ish years, you should start thinking about 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 slips lower than 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Lyneham will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective 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.
Last Autumn Finley, came dangerously close to the 80-year mark with the lease on his garden apartment in Lyneham. Having bought his home two decades ago, the length of the lease was of little bearing. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Finley was able to extend his lease just ahead of time in March. Finley and the landlord in the end agreed on the final figure of £6,000 . If he had missed the deadline, the figure would have become more costly by at least £1,125.
Last Winter we were phoned by Mr and Mrs. D Pérez , who took over the lease of a purpose-built apartment in Lyneham in September 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Lyneham with an extended lease were in the region of £243,000. The average amount of ground rent was £65 collected yearly. The lease ran out on 15 July 2088. Having 63 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including costs.
Mr and Mrs. I Carter took over the lease of a garden apartment in Lyneham in October 2010. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparative residencies in Lyneham with 100 year plus lease were valued about £181,600. The average ground rent payable was £55 collected annually. The lease ran out in 2077. Taking into account 52 years unexpired we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.