Unfortunately that a Trowbridge residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Trowbridge property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term dips below 80 years, you will then be required to pay 50% 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 additional 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 qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Trowbridge with in excess of one hundred years outstanding 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Retaining our service will provide you better control over the value of your Trowbridge leasehold, as your property will be more valuable and saleable in respect of lease length should you wish 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.
Oliver owned a studio apartment in Trowbridge being marketed with a lease of fraction over 59 years remaining. Oliver informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. 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 £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Oliver to exercise his statutory right. Oliver procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Christmas we were phoned by Dr L Bertrand , who acquired a one bedroom apartment in Trowbridge in February 1996. The question was if we could estimate the premium would be to extend the lease by an additional years. Comparative properties in Trowbridge with an extended lease were worth £285,000. The average amount of ground rent was £45 billed quarterly. The lease lapsed on 8 February 2097. Given that there were 72 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
In 2009 we were e-mailed by Mr and Mrs. D Lefèvre who, having completed a studio flat in Trowbridge in October 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Trowbridge with a long lease were worth £233,200. The average amount of ground rent was £60 invoiced annually. The lease ran out in 2086. Considering the 61 years left we approximated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of costs.