Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Lynmouth. Clearly, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Lynmouth have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give due deliberation before delaying your Lynmouth lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Lynmouth with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Lynmouth can be a difficult process. We recommend you get professional help 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 Lynmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Tommy, started to get near to the eighty-year mark with the lease on his first floor apartment in Lynmouth. Having purchased his home two decades ago, the lease term was of little bearing. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Tommy was able to extend his lease at the eleventh hour in September. Tommy and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £1,025.
Last Christmas we were e-mailed by Mr and Mrs. V Turner , who took over the lease of a one bedroom apartment in Lynmouth in September 2000. The question was if we could estimate the price could be for a 90 year lease extension. Comparable homes in Lynmouth with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ran out in 2099. Given that there were 73 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last August we were e-mailed by Mr and Mrs. L Robinson , who acquired a recently refurbished apartment in Lynmouth in February 2012. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Similar residencies in Lynmouth with an extended lease were in the region of £264,000. The average ground rent payable was £60 invoiced annually. The lease ended in 2079. Taking into account 53 years outstanding we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including legals.