Chances are that if you own a flat in Lymington you actually own a long leasehold interest over your property
Leasehold premises in Lymington with more than one hundred years outstanding on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Leeds Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers that we work with procure Lymington 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.
Benjamin owned a studio flat in Lymington on the market with a lease of a little over 72 years remaining. Benjamin on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Dr H Brooks purchased a one bedroom apartment in Lymington in January 2009. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Lymington with a long lease were in the region of £250,400. The average amount of ground rent was £65 collected every twelve months. The lease termination date was on 26 June 2090. Considering the 64 years remaining we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 plus legals.
In 2011 we were contacted by Mr K Bennett who, having purchased a purpose-built apartment in Lymington in January 1995. The question was if we could estimate the premium could be to prolong the lease by an additional years. Similar homes in Lymington with an extended lease were in the region of £184,000. The mid-range ground rent payable was £55 billed annually. The lease finished in 2079. Given that there were 53 years left we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.