As the the remaining lease term of a Trowbridge domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, over 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Trowbridge will qualify for this right; that being said a conveyancing solicitor will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Trowbridge with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Trowbridge leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jasper, came critically near to the 80-year threshold with the lease on his leasehold flat in Trowbridge. Having bought his property two decades ago, the lease term was of minimal significance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Jasper was able to extend his lease just under the wire in April. Jasper and the freeholder via the managing agents in the end settled on the final figure of £6,000 . If he had missed the deadline, the sum would have gone up by at least £900.
In 2013 we were contacted by Mr Nathan Anderson who, having purchased a one bedroom apartment in Trowbridge in February 2001. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparable residencies in Trowbridge with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease lapsed in 2084. Given that there were 58 years remaining we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.
In 2013 we were called by Mrs M Girard who, having acquired a one bedroom flat in Trowbridge in January 2000. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Trowbridge with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 billed annually. The lease lapsed in 2104. Considering the 78 years left we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.