Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Lymm. Inevitably, the length of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Lymm have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful deliberation before putting off your Lymm lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Lymm,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lymm valuers.
Liam owned a 2 bedroom apartment in Lymm on the market with a lease of a few days over fifty eight years outstanding. Liam on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Liam to exercise his statutory right. Liam obtained expert legal guidance and secured an acceptable deal informally and sell the property.
In 2009 we were e-mailed by Mrs G Edwards who, having was assigned a lease of a one bedroom flat in Lymm in August 1998. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Identical homes in Lymm with a long lease were valued around £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished in 2098. Considering the 73 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Last Winter we were contacted by Dr D Hill , who completed a one bedroom apartment in Lymm in July 2000. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar flats in Lymm with 100 year plus lease were worth £264,000. The average ground rent payable was £60 invoiced annually. The lease expired in 2078. Considering the 53 years outstanding we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including professional charges.