As the the remaining lease term of a Lyme Regis residential lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of one hundred years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Lyme Regis will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 Lyme Regis can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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 dealing with Lyme Regis lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the freeholder of her ground floor flat in Lyme Regis, Katie commenced the lease extension process just as the lease was approaching the crucial eighty-year mark. The legal work was finalised in March 2013. The freeholder’s costs were negotiated to less than 550 pounds.
Last Autumn we were e-mailed by Mr B Johnson , who completed a basement flat in Lyme Regis in March 1997. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Lyme Regis with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 billed monthly. The lease elapsed in 2097. Having 71 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2009 we were e-mailed by Mr D Bailey who, having bought a first floor apartment in Lyme Regis in February 2001. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Lyme Regis with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 collected yearly. The lease expiry date was on 3 March 2077. Having 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of legals.