Chances are that where you own a flat in Lymm you actually own a long leasehold interest over your property
Leasehold residencies in Lymm with in excess of 100 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Lymm can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Lymm lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Andrew was the the leasehold owner of a 2 bedroom flat in Lymm being marketed with a lease of a little over fifty eight years left. Andrew informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last Autumn we were contacted by Mrs O Brown , who took over the lease of a basement apartment in Lymm in June 2001. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Lymm with an extended lease were in the region of £208,200. The mid-range ground rent payable was £65 collected every twelve months. The lease expiry date was in 2087. Given that there were 61 years remaining we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus expenses.
Last Summer we were contacted by Mr and Mrs. B Hernández , who bought a ground floor apartment in Lymm in October 2002. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Lymm with an extended lease were worth £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease concluded in 2098. Given that there were 72 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.