With a domestic leasehold property in Lymm, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Leasehold owners in Lymm with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has fewer than eighty years outstanding, under the current legislation the freeholder is entitled to calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Lymm with in excess of 100 years outstanding on the lease are often referred to as ‘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 buying 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. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 guidance from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Last Summer Omar, started to get close to the eighty-year mark with the lease on his leasehold flat in Lymm. In buying his home twenty years previously, the unexpired term was of no interest. Luckily, he realised he needed to take action soon on a lease extension. Omar extended the lease just in the nick of time last March. Omar and the landlord who owned the flat above ultimately settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £900.
In 2013 we were approached by Dr L Roux who, having acquired a first floor apartment in Lymm in June 1995. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Identical homes in Lymm with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £60 invoiced monthly. The lease termination date was in 2106. Given that there were 80 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.
Last year we were called by Mr and Mrs. H Baker , who completed a one bedroom flat in Lymm in November 2004. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparative residencies in Lymm with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 collected monthly. The lease lapsed in 2086. Considering the 60 years left we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including fees.