The nearer a domestic lease in Avonmouth nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. The majority of flat owners in Avonmouth will meet the qualifying criteria; however a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Avonmouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Following lengthy correspondence with the landlord of her ground floor apartment in Avonmouth, Hannah initiated the lease extension process just as the lease was approaching the all-important 80-year threshold. The lease extension was finalised in July 2012. The landlord’s fees were kept to an absolute minimum.
Dr Finley Roberts was assigned a lease of a one bedroom apartment in Avonmouth in September 2011. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Avonmouth with a long lease were in the region of £208,200. The average amount of ground rent was £65 billed monthly. The lease concluded in 2085. Taking into account 61 years unexpired we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus fees.
In 2013 we were called by Mrs Katie Hill who, having was assigned a lease of a one bedroom flat in Avonmouth in October 2005. The question was if we could approximate the price would likely be to extend the lease by an additional years. Identical homes in Avonmouth with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish on 10 July 2096. Given that there were 72 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.