With a long leasehold premises in Lymm, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than eighty years remaining. Anyone in Lymm with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once a lease has fewer than eighty years outstanding, under the current legislation the freeholder is entitled to calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Lymm can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 procuring Lymm lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the freeholder of her ground floor flat in Lymm, Lily initiated the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The legal work was concluded in November 2007. The freeholder’s charges were negotiated to slightly above 550 pounds.
In 2010 we were e-mailed by Mr Jayden Nelson who, having bought a ground floor apartment in Lymm in January 2007. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical residencies in Lymm with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease expired on 4 November 2098. Having 72 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Last year we were approach by Mr and Mrs. M Bernard , who was assigned a lease of a purpose-built flat in Lymm in February 2011. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable properties in Lymm with a long lease were valued around £261,600. The average ground rent payable was £60 collected annually. The lease came to a finish in 2078. Taking into account 52 years outstanding we calculated the premium to the landlord to extend the lease to be between £39,000 and £45,000 not including professional charges.