For those whose Dursley flat is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold premises in Dursley with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 maintenance charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Dursley can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 in-depth market knowledge procuring Dursley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Charlie was the the leasehold proprietor of a conversion flat in Dursley on the market with a lease of just over 59 years remaining. Charlie on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Charlie to invoke his statutory right. Charlie procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Mr Toby Cooper completed a one bedroom apartment in Dursley in March 2003. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Dursley with 100 year plus lease were valued about £191,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease concluded on 16 February 2083. Considering the 58 years outstanding we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of costs.
Dr M Collins moved into a one bedroom flat in Dursley in March 2003. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Dursley with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected every twelve months. The lease concluded in 2094. Considering the 69 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.