With a domestic leasehold property in Lynmouth, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years remaining. Leasehold owners in Lynmouth with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has fewer than eighty years outstanding, under the current Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Lynmouth,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lynmouth valuers.
Charlie owned a conversion flat in Lynmouth being marketed with a lease of a little over 61 years left. Charlie on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Charlie to invoke his statutory right. Charlie obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Dr E Martin took over the lease of a ground floor apartment in Lynmouth in March 2007. The question was if we could approximate the premium would be to extend the lease by ninety years. Similar homes in Lynmouth with a long lease were in the region of £242,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease termination date was on 7 August 2092. Taking into account 67 years as a residual term we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus professional charges.
In 2012 we were called by Mr and Mrs. P Allen who, having took over the lease of a first floor apartment in Lynmouth in March 1997. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Similar properties in Lynmouth with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 collected per annum. The lease ended on 28 August 2103. Considering the 78 years left we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.