Dursley residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent 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 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Dursley can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Dursley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hunter owned a studio apartment in Dursley on the market with a lease of a few days over 59 years remaining. Hunter on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Hunter to invoke his statutory right. Hunter obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2011 we were phoned by Dr L Cox who, having purchased a recently refurbished flat in Dursley in March 1997. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparative homes in Dursley with an extended lease were worth £246,800. The average amount of ground rent was £60 billed yearly. The lease came to a finish in 2075. Taking into account 50 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 not including expenses.
In 2011 we were approached by Ms N Fournier who, having moved into a garden flat in Dursley in January 2011. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Dursley with 100 year plus lease were in the region of £208,200. The mid-range ground rent payable was £65 invoiced annually. The lease terminated on 14 March 2086. Considering the 61 years remaining we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus professional charges.