Undy leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in Undy will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately 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 |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Undy,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Undy valuers.
Archie owned a 2 bedroom flat in Undy being sold with a lease of just over sixty years outstanding. Archie on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Archie to exercise his statutory right. Archie obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
Dr O Wright purchased a ground floor apartment in Undy in July 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Undy with an extended lease were worth £265,000. The average amount of ground rent was £55 collected yearly. The lease terminated on 25 May 2099. Having 74 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last month we were contacted by Dr U Anderson , who purchased a studio apartment in Undy in June 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Undy with a long lease were worth £166,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease expired in 2079. Considering the 54 years left we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including professional charges.