With a long leasehold property in Lymington, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Lymington with a lease drawing near to 81 years left should seriously consider extending it without delay. Once the lease term has under eighty years left, under the current Act the freeholder is entitled to calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over 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 left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
Irrespective of whether you are a tenant or a freeholder in Lymington,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lymington valuers.
Lucas was the the leasehold owner of a 2 bedroom flat in Lymington being sold with a lease of just over fifty eight years remaining. Lucas informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Lucas to invoke his statutory right. Lucas procured expert advice and secured an acceptable resolution informally and sell the property.
Ms Ashleigh James acquired a newly refurbished flat in Lymington in June 2000. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable properties in Lymington with a long lease were in the region of £290,000. The average ground rent payable was £45 collected yearly. The lease finished on 26 March 2098. Taking into account 73 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2011 we were e-mailed by Dr J Nelson who, having owned a ground floor apartment in Lymington in August 2009. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Lymington with 100 year plus lease were worth £240,600. The average ground rent payable was £60 collected every twelve months. The lease expired in 2087. Having 62 years remaining we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of legals.