The market value of Lymington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Lymington,the lease extension lawyers 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 Lymington valuers.
Muhammad owned a studio apartment in Lymington being marketed with a lease of fraction over fifty eight years left. Muhammad on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. O Rodríguez purchased a studio flat in Lymington in March 1997. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative residencies in Lymington with an extended lease were valued around £198,800. The mid-range ground rent payable was £55 invoiced per annum. The lease expiry date was in 2081. Considering the 55 years remaining we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus professional charges.
In 2010 we were e-mailed by Dr Abbie Hall who, having acquired a garden apartment in Lymington in June 1996. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparable premises in Lymington with a long lease were in the region of £295,000. The mid-range amount of ground rent was £50 collected per annum. The lease concluded on 10 May 2101. Given that there were 75 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.