Lymm leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Lymm will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date 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 experts that we work with will always be willing 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 year Reuben, started to get near to the 80-year threshold with the lease on his ground floor flat in Lymm. Having bought his flat 19 years ago, the length of the lease was of no relevance. by good luck, he realised he would soon be paying an inflated amount for a lease extension. Reuben was able to extend his lease just ahead of time last June. Reuben and the freeholder subsequently agreed on sum of £5,000 . If the lease had dropped below 80 years, the amount would have gone up by at least £1,050.
Mr W Peterson took over the lease of a basement flat in Lymm in May 2002. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Lymm with a long lease were valued about £173,800. The average amount of ground rent was £65 invoiced annually. The lease lapsed on 18 June 2081. Considering the 55 years outstanding we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.
Dr J Gunderson bought a one bedroom apartment in Lymm in February 2001. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Lymm with a long lease were worth £235,200. The mid-range ground rent payable was £45 collected annually. The lease concluded in 2092. Given that there were 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.