Chances are that where you own a flat in Lymm you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service gives you enhanced control over the value of your Lymm leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jayden was the the leasehold proprietor of a conversion flat in Lymm on the market with a lease of a few days over fifty eight years unexpired. Jayden on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be payable on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and secured satisfactory deal informally and sell the property.
In 2011 we were e-mailed by Mrs G Rose who, having completed a studio flat in Lymm in July 1998. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Lymm with an extended lease were valued about £183,600. The average amount of ground rent was £65 billed quarterly. The lease finished on 5 October 2083. Given that there were 57 years outstanding we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.
Last Autumn we were e-mailed by Mr and Mrs. V Watson , who moved into a first floor flat in Lymm in April 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Lymm with a long lease were in the region of £250,000. The average amount of ground rent was £50 billed every twelve months. The lease finished on 18 May 2094. Given that there were 68 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.