On the balance of probabilities where you own a flat in Lyme Regis you actually own a long leasehold interest over your property
Leasehold properties in Lyme Regis with in excess of 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with handle Lyme Regis lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Tommy was the the leasehold owner of a studio apartment in Lyme Regis being sold with a lease of a little over 59 years remaining. Tommy on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Tommy to invoke his statutory right. Tommy procured expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2010 we were approached by Mr and Mrs. D Bonnet who, having took over the lease of a first floor apartment in Lyme Regis in June 2003. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Lyme Regis with a long lease were valued around £210,600. The mid-range amount of ground rent was £45 billed yearly. The lease elapsed in 2087. Given that there were 62 years remaining we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including professional charges.
Dr Tommy Lambert purchased a basement apartment in Lyme Regis in September 2004. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable flats in Lyme Regis with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ran out on 26 November 2098. Considering the 73 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.