Lymm leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Lymm residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Lymm you should check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
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 premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Lymm 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.
Matthew owned a high value flat in Lymm being sold with a lease of a few days over sixty years outstanding. Matthew on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Summer we were e-mailed by Mr James Robinson , who moved into a purpose-built apartment in Lymm in February 2011. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparable homes in Lymm with an extended lease were in the region of £215,600. The average amount of ground rent was £45 collected annually. The lease ran out on 8 August 2087. Taking into account 62 years left we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus fees.
Mr T Martinez moved into a one bedroom flat in Lymm in October 2008. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Similar residencies in Lymm with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease finished in 2098. Considering the 73 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.