It’s a harsh certainty that a Lyme Regis residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Lyme Regis property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. Most leasehold owners in Lyme Regis will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Lyme Regis,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 in-depth market knowledge and the close ties they enjoy with Lyme Regis valuers.
Alfie was the the leasehold owner of a high value apartment in Lyme Regis being marketed with a lease of a few days over sixty years unexpired. Alfie informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert advice and secured satisfactory resolution informally and readily saleable.
In 2010 we were called by Mr and Mrs. P Nelson who, having purchased a purpose-built flat in Lyme Regis in June 1998. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative residencies in Lyme Regis with a long lease were valued around £265,000. The mid-range amount of ground rent was £50 billed monthly. The lease expired in 2099. Having 74 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2012 we were phoned by Dr G Martinez who, having purchased a ground floor apartment in Lyme Regis in April 2002. We are asked if we could approximate the price would be to prolong the lease by 90 years. Identical premises in Lyme Regis with an extended lease were valued around £166,400. The average amount of ground rent was £60 invoiced per annum. The lease expired in 2079. Having 54 years as a residual term we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including expenses.