The closer a domestic lease in Lechlade nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of one hundred years to run then this decrease may be negligible however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. The majority of flat owners in Lechlade will qualify for this right; however a lawyer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Lechlade with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with undertake Lechlade 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 conveyancing solicitor we work with provide it.
Gabriel owned a 2 bedroom apartment in Lechlade on the market with a lease of just over fifty eight years outstanding. Gabriel informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2009 we were contacted by Dr Charlie Davies who, having acquired a purpose-built apartment in Lechlade in May 2008. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative premises in Lechlade with 100 year plus lease were valued around £275,000. The average ground rent payable was £55 invoiced quarterly. The lease came to a finish in 2102. Considering the 76 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
In 2013 we were phoned by Dr Kian Walker who, having completed a first floor apartment in Lechlade in August 1998. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable homes in Lechlade with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 billed annually. The lease lapsed in 2082. Having 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of professional charges.