Lynmouth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Lynmouth residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Lynmouth you really ought to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | 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. |
Irrespective of whether you are a tenant or a freeholder in Lynmouth,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 experience and the close ties they enjoy with Lynmouth valuers.
After unsuccessful correspondence with the freeholder of her studio flat in Lynmouth, Samantha initiated the lease extension process as the 80 year threshold was swiftly coming. The lease extension completed in February 2015. The freeholder’s costs were negotiated to less than 700 GBP.
Ms M Morgan bought a garden apartment in Lynmouth in March 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Lynmouth with 100 year plus lease were valued around £193,400. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ran out in 2083. Having 59 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.
Last Spring we were phoned by Mr G Khan , who owned a studio apartment in Lynmouth in March 2007. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparable homes in Lynmouth with an extended lease were valued about £255,000. The average amount of ground rent was £50 collected monthly. The lease ran out in 2094. Having 70 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 exclusive of legals.