As the length of the unexpired term of a Lynmouth domestic lease decreases so does its value and therefore the value of your property. If the residual term has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. Many flat owners in Lynmouth will qualify for this right; however a lawyer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you enhanced control over the value of your Lynmouth leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Owen owned a high value flat in Lynmouth being sold with a lease of a few days over 61 years remaining. Owen informally contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Ms Rhiannon Cox was assigned a lease of a newly refurbished flat in Lynmouth in January 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable premises in Lynmouth with 100 year plus lease were valued around £285,000. The average amount of ground rent was £55 invoiced yearly. The lease came to a finish on 22 October 2106. Taking into account 80 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.
Last month we were contacted by Mr and Mrs. G Patel , who owned a first floor flat in Lynmouth in November 1998. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical premises in Lynmouth with an extended lease were worth £200,800. The average amount of ground rent was £65 collected annually. The lease finished on 10 May 2086. Having 60 years outstanding we approximated the premium to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of expenses.