With a long leasehold property in Lymm, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years remaining. Leasehold owners in Lymm with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has fewer than eighty years remaining, under the relevant legislation the landlord can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Lymm with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| National Westminster Bank |
The conveyancing solicitors that we work with procure 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.
Half a year ago Dexter, started to get close to the eighty-year mark with the lease on his studio apartment in Lymm. Having bought his property twenty years ago, the unexpired term was of little importance. As luck would have it, he noticed he needed to take action soon on a lease extension. Dexter arranged for a lease extension at the eleventh hour in August. Dexter and the freeholder via the managing agents eventually settled on an amount of £5,500 . If he failed to meet the deadline, the amount would have become more costly by a minimum £875.
Last Christmas we were called by Mr and Mrs. M Nguyen , who bought a purpose-built flat in Lymm in May 2006. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Similar properties in Lymm with a long lease were worth £260,000. The average ground rent payable was £50 invoiced quarterly. The lease finished in 2097. Considering the 71 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
Last Winter we were called by Mr and Mrs. V Cooper , who owned a first floor apartment in Lymm in April 2005. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative premises in Lymm with 100 year plus lease were valued around £254,200. The mid-range amount of ground rent was £60 billed per annum. The lease concluded on 28 November 2077. Having 51 years outstanding we calculated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of professional charges.