It’s a harsh truth that a South Petherton and Lambrook 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 loss of value being disguised by increases in the South Petherton and Lambrook property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in South Petherton and Lambrook will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your South Petherton and Lambrook leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the landlord of her one bedroom apartment in South Petherton and Lambrook, Rhiannon commenced the lease extension process as the eighty year mark was fast approaching. The lease extension was finalised in May 2015. The landlord’s fees were negotiated to less than 450 pounds.
Last April we were approach by Dr Luca Flores , who was assigned a lease of a purpose-built apartment in South Petherton and Lambrook in August 1997. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical flats in South Petherton and Lambrook with an extended lease were valued about £174,200. The mid-range ground rent payable was £55 collected annually. The lease elapsed on 19 September 2077. Having 51 years outstanding we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.
Dr E Lee moved into a first floor apartment in South Petherton and Lambrook in February 1995. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in South Petherton and Lambrook with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 invoiced every twelve months. The lease expiry date was in 2097. Considering the 71 years unexpired we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.