The value of Lynmouth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than eighty years
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Lynmouth can be a difficult process. We recommend you procure professional help from a conveyancer 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 in-depth market knowledge 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.
Last Christmas Daniel, came dangerously near to the 80-year mark with the lease on his one bedroom flat in Lynmouth. Having bought his home two decades ago, the lease term was of no importance. Luckily, he became aware that he would soon be paying an escalated premium for Extending the lease. Daniel was able to extend his lease just under the wire last May. Daniel and the freeholder via the managing agents ultimately settled on sum of £5,500 . If he not met the deadline, the amount would have increased by at least £1,025.
Mr and Mrs. V Williams took over the lease of a studio flat in Lynmouth in June 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Lynmouth with a long lease were valued around £210,600. The average ground rent payable was £45 collected monthly. The lease lapsed in 2087. Having 62 years remaining we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including professional charges.
Mr and Mrs. V Davis moved into a first floor flat in Lynmouth in April 2003. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical premises in Lynmouth with an extended lease were worth £265,000. The mid-range ground rent payable was £50 collected yearly. The lease concluded on 25 February 2098. Taking into account 73 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.