Lymm leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Lymm enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Lymm you must check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Lymm flat owner with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Lymm with more than 100 years outstanding 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Lymm,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lymm valuers.
Last Summer Lewis, came very near to the eighty-year mark with the lease on his purpose- built flat in Lymm. In buying his property 18 years previously, the lease term was of minimal relevance. As luck would have it, he recognised he would soon be paying way over the odds for a lease extension. Lewis extended the lease just ahead of time last August. Lewis and the landlord ultimately agreed on sum of £5,000 . If the lease had fallen lower than 80 years, the sum would have gone up by a minimum £850.
Mr and Mrs. P Mercier was assigned a lease of a first floor apartment in Lymm in October 2001. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative homes in Lymm with an extended lease were in the region of £275,000. The average amount of ground rent was £55 collected yearly. The lease terminated in 2102. Given that there were 76 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2010 we were e-mailed by Mr and Mrs. E Simon who, having completed a ground floor apartment in Lymm in June 1999. The question was if we could estimate the price would be to prolong the lease by 90 years. Similar homes in Lymm with an extended lease were worth £176,200. The mid-range ground rent payable was £65 invoiced monthly. The lease expired on 7 January 2082. Taking into account 56 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including professional charges.