When it comes to residential leasehold property in Lyme Regis, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Lyme Regis with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has under 80 years left, under the current Act the freeholder is entitled to calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| 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 are not acceptable. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Lyme Regis,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lyme Regis valuers.
Two years ago Henry, came precariously near to the eighty-year threshold with the lease on his two bedroom apartment in Lyme Regis. In buying his home 18 years ago, the lease term was of minimal concern. by good luck, he recognised he needed to take action soon on a lease extension. Henry was able to extend his lease at the eleventh hour last July. Henry and the freeholder via the management company in the end settled on sum of £5,000 . If he not met the deadline, the sum would have escalated by at least £1,000.
Mr and Mrs. P Thompson took over the lease of a one bedroom apartment in Lyme Regis in October 2005. The question was if we could estimate the price could be to extend the lease by a further 90 years. Comparative homes in Lyme Regis with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 collected quarterly. The lease expired on 21 March 2083. Taking into account 57 years left we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.
Last Autumn we were e-mailed by Dr T Patel , who owned a newly refurbished apartment in Lyme Regis in May 2010. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar homes in Lyme Regis with an extended lease were in the region of £245,000. The mid-range amount of ground rent was £45 collected annually. The lease expired on 27 September 2094. Given that there were 68 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.