For anyone whose Lyme Regis home is held on a long lease, the message is clear – if you do nothing, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Lyme Regis can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
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 procuring 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.
Half a year ago Alexander, came very close to the 80-year threshold with the lease on his basement apartment in Lyme Regis. In buying his flat 18 years previously, the lease term was of no relevance. Luckily, he realised he needed to take steps soon on a lease extension. Alexander extended the lease just in the nick of time last July. Alexander and the freeholder via the management company subsequently settled on a premium of £5,500 . If he not met the deadline, the figure would have escalated by at least £875.
In 2011 we were contacted by Mr and Mrs. U Scott who, having was assigned a lease of a basement apartment in Lyme Regis in October 2006. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Lyme Regis with a long lease were valued around £168,800. The average ground rent payable was £60 invoiced per annum. The lease concluded on 26 August 2080. Considering the 55 years unexpired we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including legals.
Ms T Bonnet bought a ground floor flat in Lyme Regis in November 2000. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar flats in Lyme Regis with an extended lease were worth £235,200. The average ground rent payable was £45 collected quarterly. The lease ran out in 2091. Considering the 66 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.