Lymington leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Lymington will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain cases you may not qualify. There are prescribed timetables and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Lymington leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Luke owned a conversion apartment in Lymington being sold with a lease of a few days over 59 years remaining. Luke informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Luke to invoke his statutory right. Luke obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Last month we were called by Mr and Mrs. K Ali , who owned a one bedroom flat in Lymington in January 2011. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar properties in Lymington with a long lease were valued around £223,400. The mid-range amount of ground rent was £60 collected quarterly. The lease came to a finish on 10 April 2085. Taking into account 59 years unexpired we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 plus fees.
In 2011 we were approached by Mr and Mrs. W Scott who, having purchased a first floor apartment in Lymington in September 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Lymington with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease terminated in 2105. Having 79 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.