Main reasons to commence your Lymington lease extension

Top reasons for lease extension now:

A Lymington leasehold property depreciates with the years remaining on the lease.

The only way is down when it comes to Lymington lease terms. Lymington properties that have a lease term shorter than 80 years will drop in market price even faster, and the cost to extend your lease will increase.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Mortgage lenders may not finance a property on a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Lymington lease extension solicitors or enfranchisement solicitors

The conveyancers 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 conveyancing solicitor we work with provide it.

Lymington Lease Extension Case Summaries:

Oliver, Lymington, Hampshire,

Oliver owned a high value flat in Lymington being marketed with a lease of fraction over sixty years unexpired. Oliver informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oliver to exercise his statutory right. Oliver procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.

Lymington case:

In 2010 we were e-mailed by Mrs S Hall who, having bought a basement flat in Lymington in August 2006. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Identical premises in Lymington with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded in 2102. Taking into account 76 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.

Lymington case:

Last Summer we were e-mailed by Dr Dylan Alexander , who was assigned a lease of a basement apartment in Lymington in February 2011. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Identical residencies in Lymington with an extended lease were in the region of £257,800. The average amount of ground rent was £65 collected monthly. The lease came to a finish on 23 June 2091. Given that there were 65 years as a residual term we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including professional charges.