The value of Lymm leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than eighty years
Leasehold premises in Lymm with in excess of one hundred years remaining 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Ben owned a high value flat in Lymm being marketed with a lease of a few days over fifty eight years left. Ben informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Ben to exercise his statutory right. Ben obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Dr I Cook bought a one bedroom apartment in Lymm in July 2003. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparable properties in Lymm with an extended lease were in the region of £264,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease ended in 2079. Taking into account 53 years left we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus legals.
Last Autumn we were contacted by Mrs Amber Collins , who bought a garden apartment in Lymm in November 2009. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar premises in Lymm with 100 year plus lease were valued around £225,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired in 2090. Considering the 64 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of fees.