It’s a harsh truth that a Trowbridge residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Trowbridge property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Trowbridge will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Trowbridge,the lease extension solicitors 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 Trowbridge valuers.
Freddie owned a studio apartment in Trowbridge on the market with a lease of fraction over 72 years unexpired. Freddie informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Freddie to invoke his statutory right. Freddie procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
In 2012 we were e-mailed by Mrs Georgia Brooks who, having acquired a garden apartment in Trowbridge in February 2000. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical premises in Trowbridge with 100 year plus lease were valued around £174,200. The mid-range ground rent payable was £55 invoiced annually. The lease ended in 2077. Given that there were 51 years unexpired we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.
Mrs O Wood was assigned a lease of a studio apartment in Trowbridge in April 1996. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Trowbridge with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed yearly. The lease ended in 2097. Given that there were 71 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.