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 expense of extending the lease can increase materialy once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service will provide you increased 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 want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful discussions with the landlord of her two bedroom flat in Lymington, Molly commenced the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work was finalised in September 2015. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were e-mailed by Mr and Mrs. O Allen who, having owned a studio apartment in Lymington in February 2006. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Lymington with an extended lease were in the region of £191,400. The average ground rent payable was £55 billed yearly. The lease end date was on 17 November 2079. Considering the 54 years as a residual term we estimated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including legals.
In 2009 we were called by Dr O Edwards who, having was assigned a lease of a purpose-built flat in Lymington in October 2007. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar homes in Lymington with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease concluded in 2099. Taking into account 74 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.