The market value of a leasehold property in Lymm depends on how many years the lease has left to run. If it is near to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded in advance of the eighty year mark. Leasehold Reform legislation entitles Lymm qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Lymm with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Regardless of whether you are a tenant or a landlord in Lymm,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lymm valuers.
Trailing lengthy discussions with the freeholder of her studio flat in Lymm, Gemma started the lease extension process just as her lease was approaching the all-important 80-year deadline. The transaction completed in July 2015. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were called by Dr Francesca Phillips who, having owned a purpose-built flat in Lymm in September 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Lymm with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease finished in 2082. Taking into account 56 years left we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of costs.
Last year we were phoned by Mr T Brooks , who owned a one bedroom apartment in Lymm in February 2008. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar residencies in Lymm with a long lease were worth £242,600. The average ground rent payable was £45 billed annually. The lease lapsed in 2093. Considering the 67 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including professional charges.