When it comes to domestic leasehold premises in Lytchett Matravers, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Leasehold owners in Lytchett Matravers with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has under 80 years outstanding, under the relevant Act the freeholder can calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Lytchett Matravers with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Yorkshire 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. |
Using our service will provide you enhanced control over the value of your Lytchett Matravers leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Hunter was the the leasehold proprietor of a conversion flat in Lytchett Matravers on the market with a lease of a little over sixty years outstanding. Hunter on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Hunter to exercise his statutory right. Hunter obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Mr Caleb Clark bought a purpose-built apartment in Lytchett Matravers in August 2006. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative homes in Lytchett Matravers with 100 year plus lease were worth £227,800. The mid-range ground rent payable was £45 invoiced per annum. The lease ended on 26 June 2090. Considering the 65 years outstanding we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
Mr H Bernard took over the lease of a garden apartment in Lytchett Matravers in November 1998. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative residencies in Lytchett Matravers with a long lease were in the region of £275,000. The average ground rent payable was £55 invoiced every twelve months. The lease terminated in 2101. Having 76 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.