Main reasons to start your Lyme Regis lease extension

Main reasons to commence your Lyme Regis lease extension today:

Increase your lease and increase your Lyme Regis property value

Lyme Regis leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Lyme Regis tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Lyme Regis you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold premises in Lyme Regis with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders may not finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become nervous at around 75 years. This will be problematic as and when you come to sell or remortgage your flat as it will be effectively unmortgageable. You might have no immediate desire to sell but when you do your buyer must hold off for two years before being able to initiate the legal procedures for a lease extension.

Why use us for your lease extension in Lyme Regis?

Regardless of whether you are a tenant or a landlord in Lyme Regis,the lease extension experts that we work with will always be prepared 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.

Lyme Regis Lease Extension Case Studies:

Logan, Lyme Regis, Dorset,

Logan was the the leasehold owner of a studio apartment in Lyme Regis being marketed with a lease of fraction over 72 years outstanding. Logan on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Logan to exercise his statutory right. Logan procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Lyme Regis case:

Last month we were contacted by Mr and Mrs. D King , who acquired a one bedroom apartment in Lyme Regis in August 1997. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Lyme Regis with an extended lease were valued around £256,600. The mid-range amount of ground rent was £60 collected monthly. The lease terminated in 2078. Having 52 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £41,800 and £48,400 not including legals.

Lyme Regis case:

Last month we were phoned by Ms Olivia López , who took over the lease of a one bedroom flat in Lyme Regis in January 1999. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Identical homes in Lyme Regis with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out on 24 February 2089. Taking into account 63 years outstanding we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including professional charges.