When it comes to domestic leasehold property in Lytchett Matravers, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern 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 consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years remaining. Leasehold owners in Lytchett Matravers with a lease drawing near to 81 years left should seriously consider extending it sooner than later. When the lease term has under 80 years remaining, under the relevant statute the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Lytchett Matravers can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 a wealth of experience dealing with Lytchett Matravers lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Samuel, started to get near to the eighty-year threshold with the lease on his studio apartment in Lytchett Matravers. Having purchased his property two decades ago, the lease term was of minimal significance. Thankfully, he realised he needed to take action soon on a lease extension. Samuel arranged for a lease extension just under the wire in June. Samuel and the freeholder via the managing agents subsequently settled on sum of £6,000 . If the lease had descended lower than 80 years, the premium would have gone up by at least £925.
Mr and Mrs. M Miller moved into a one bedroom apartment in Lytchett Matravers in March 2007. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable properties in Lytchett Matravers with an extended lease were worth £265,000. The average ground rent payable was £55 collected monthly. The lease end date was on 17 February 2099. Given that there were 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Last Autumn we were phoned by Mr L Martin , who took over the lease of a purpose-built apartment in Lytchett Matravers in November 1997. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative flats in Lytchett Matravers with an extended lease were worth £166,400. The average ground rent payable was £60 billed quarterly. The lease ran out in 2079. Taking into account 54 years as a residual term we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of expenses.